This week was internet week. I listened to a lot of media companies talk about “Premium Content” but I’m not sure that this is the right vernacular anymore.

Large media companies establish businesses on the basis that they can create an entire line of “premium content.” Information that is assembled, curated, and distributed with a stamp of approval – that stamp is the company brand name. There is a lot of value to this process, but I don’t buy it, at least not in today’s world.

If I had to choose between reading content written or produced by a “big name media company” or by someone I know and trust, or someone who has a community vouching for that person’s character, credentials and opinions, and someone (or a group of people) that focus on very specific topics and are experts in those topics, I will always choose the latter. (If I could do both, that would be killer – and is a viable business opportunity in my opinion)

I was riding the NYC subway yesterday and saw a quote for a book review. It said something along the lines of:

“An ultimate matchup between….You can’t put this down, it’s one of its kind” – The some city Post

Really? Why should I care that this newspaper, a newspaper from a city I’ve never even been to before, gave the book a rave review? Who cares?

What I really care about is the person that gave the review. I want to know who that person is. I want to know what that person has done and why they are entitled to speak on behalf of some newspaper. If that person’s opinion matters so much, I should be the one to decide.

The future of “Premium Content” will be created by small groups of people and crowds. People with a passion for niche topics, and those people will intently focus on that one topic. They will become businesses unto themselves. The community will provide the seal of approval and the “big name media company” will matter less, unless their businesses change – to businesses of small, relevant, meaningful “niche content.”

“Premium Content” is the wrong name – will be called “Niche Content” is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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Picture from the event

I always knew there was something super advanced and different about the Black Eyed Peas. My first sign was when I saw them perform at Intel’s private launch party for their Core 2 Duo processor at the 2006 Consumer Electronics Show in Las Vegas (thanks to Marc Harrison – pictures below). It was the first time I ever experienced a collision of mainstream music, technology, celebrities, and media all in one room, at one major event.

Yesterday I read an article in the Rolling Stones by Chris Norris titled “40 Reasons To Be Excited About Music” and sure enough, coming in at No.1 was “The Black Eyed Peas – Will.I.Am and the Science of Global Pop Domination.”

The entire article is certainly worth a read for anyone that’s in to music, but the piece that really hit me was this…

“To Will.i.am, songs aren’t discrete works of art but multi-use applications – hit singles, ad jingles, film trailers – all serving a purpose larger than music consumption. Creatively, he draws no distinction between writing rhymes and business plans, rocking arenas and PowerPoint, producing albums and media platforms, all these falling under a cleareyed mission to unite the largest possible audience over the broadest range imaginable. It’s a mission he communicates with a combination of Pentecostal zeal and Silicon Valley jargon, suggesting a hybrid of Stevie Wonder and Steve Jobs.”

It’s the idea that media and music are really one in the same. That business and music are thought about the same way and are less complimentary but more interconnected.

Over the past year, the lines between technology, software, media, music, marketing and news has become increasingly blurry.

Here are just some examples:

• Meredith Media, a company that used to be a traditional publishing company is now acting as a fully integrating marketing agency.
• Global advertising holding companies like Havas, OMD, and Publicis are now looking to build their own technology units in house in an attempt to replace the need for Ad Networks and control the entire online advertising stack.
• Software is Media, says Fred Wilson in a recent post –  ”Media are the tools that are used to communicate. And software that runs on the web is part of the media landscape.”
• NBC recently launched a new program called “Behavior Placement” which is “designed to sway viewers to adopt actions they see modeled in their favorite shows.”

And even today there’s news about how Hearst, another traditional publishing company, is looking to buy the digital advertising firm iCrossing for $375M.

As are lives continue to digitize, the companies and artists that continue to take a longer, interconnected view on culture, technology and media, will be the ones that succeed. Will.i.am and the BEP are definitely on “that next shit now.”

Intel – Black Eyed Peas

Will.i.am is the Man – Creating a New Era of Music Media Platforms is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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A lot of people recently asked me about internet based businesses. Things like: How to start a blog or website, what is twitter, how to use twitter, how to increase followers and traffic, how to register a domain name, what is a domain, how to create a mailing list, how to use analytics, what is a good number of followers, how to obtain affiliates, how to create partnerships, etc.

These things may all seem trivial to anyone in the tech space but to those just entering, they seem non trivial, foreign perhaps, but very attainable.

Simply put, the evolving web has made things easy. The barriers of entry to creating an online business are much lower, but creating a long-lasting business under this premise is much harder.

It seems to me like this is one thing that is severely overlooked these days. I’m all for starting new projects and businesses, but if you plan to do so, you should also recognize that you are most definitely not the only one.

One way to overcome this obstacle, and perhaps the best way (without knowing how to write code) is to start a business with a very niche focus. If you are successful, you can certainly expand your focus, but to start, you probably want to try to build a loyal following first. And to do that takes hard work.

In the beginning, try to be the very best at something very niche. That’s what I would do.

Take it from this guy (Gary Vaynerchuk). He certainly has.

Nice’n Niche is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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Doug Weaver wrote a great piece today titled The New Oreo, Part 3: The Audience Layer.

“Anyone mildly plugged into digital advertising in 2010 can’t possibly ignore the noise and energy around audience buying.

…

There are many people in our industry who can go a lot deeper on this topic than I…”

I’ll attempt to take it a bit “deeper” but will do so around his 4 premises.

1. It’s a Different Marketplace: “Audience buying is happening, and it is going to happen more”, but today, the market is not transparent. There are many companies out there that can sell your data for a price (and if not tied to media its probably much less), but what value are you getting other than a new, arguably small revenue stream? Are you learning about data strategies for your own organization? Are you learning about audience data collection, segmentation and optimization? If you’re going to invest time and effort in a new partnership, understand how the “data” company can make you smarter and affect your business in a meaningful way. One that adds long term value. Remember what ad networks did to your business?
2. Create a Trading Desk: “Segregating and centralizing the audience selling activity inside your organization is a good idea. Keep your ‘page sellers’ focused on selling the value of placement. Let your specialists manage the relationships and requests from DSPs and interact with your optimizers.” I would take this one step further..in the opposite direction. Publisher that can take the lead and sell audiences on top of their placement should see increased CPM rates and differentiation from their competitors. If this is where the market is heading, might as well start understanding it now.
3. Demand See-Through Tags: If a company is tagging your site, you should not only understand who pays the freight, but you should have some visibility into the actual shipment. Simply put, you are entitled for more insights other than just a paycheck.
4. If You’re a Data Enabler, Get Paid for It: Publishers should absolutely get paid for their data, but they should work to optimize the use of that data by looking at and leveraging the individual behaviors as well as applying that data towards multiple revenue streams. Companies that can offer revenue streams for media and data, using the same data source, can help the publisher over the long haul in establishing a meaningful, multifaceted business.

(Disclosure: The post can also be found at Lotame Learnings. Lotame is my current employer)

Oreos are Good, Especially The Audience Layer is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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When things get so complicated the best thing you can do is go back to the basics.

In today’s world of online advertising, the “basics” are changing so it’s important to understand what those changes are and how they affect a marketer’s business.

I wrote a piece that was featured in today’s iMedia Connection that discusses this very point.

Excerpt from the article:

We are at the cusp of a new age of online advertising. As news ways of thinking about the ecosystem emerge, so too are there new ways for advertising campaign deployment. Math now seems as equally important as creativity. Technology now seems as important as artistic ability. This evolving trend has spawned new companies and has required older companies to change their very DNA, and with that, their name or classification.

The entire piece is here.

Things used to be much simpler…

When it comes to Online Advertising, Keep It Simple Stupid is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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The online advertising industry at large is sprinting towards maximizing efficiency. Overall, the working theory is that smart aggregation and assembly of various technology providers will create a unique solution for display advertising, and one that combines audience targeting, procurement, arbitrage and media trade. However, if, as Randall Rothenberg, CEO of IAB, states: “technology succeeds in driving the cost of reaching the perfect audience down to zero” in his latest post titled “Is Marketing a Strategic Resource or a Procured Commodity?” then the industry might be fumbling towards false ecstasy, with “the same low costs, the same perfect efficiency, for doing the same exact thing.”

Allow me to explain. With all of the aggregation and consolidation of publishers, networks, and exchanges, in many instances, an overlap occurs with publisher inventory. Think about a typical web publisher in today’s ecosystem. Think about how many ad networks that publisher works with. Now think about how many ad exchanges those ad networks work with. Then think about how many Demand Side Platforms those ad exchanges work with. The result? The tail wags the dog: when you bid on an impression, in all likely hood, you are bidding on yourself, for the same piece of inventory. This overlap and inconsistency in many cases results in decreased efficiency.

Here at Lotame we call this concept “Macrotization” wherein you try and optimize results at the macro level but have built algorithms and processes that can’t ultimately be supported by the disparate supporting systems and components. Many of the components in these new advertising platforms don’t necessarily complement each other, even though it may seem as if they do, and complementary buzzwords often connect ephemeral dots that don’t belong. In time, the foundation for macrotization will settle, but for now, tremors still abound.

The truth is, there are few companies out there that successfully manage all pieces of the “macrotization” process. Those that can will deliver true efficiencies for their clients because they can seamlessly connect and control all pieces in the value chain—from audience identification through media delivery and resulting insights—in a completely transparent manner.

(Disclosure: The post can also be found at Lotame Learnings. Lotame is my current employer)

The “Macrotization” of Ad Serving, Ad Exchanges, and Demand Side Platforms is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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The world will never be the same. Our society used to build machines and parts, in factories and in assembly lines. Today, our society builds computer programs and data bases, on laptops and in many cases, from anywhere around the world. People and businesses are becoming more efficient. They are working smarter, not harder, because they are beginning to leverage the most valuable employee of all: Data.

Take for example the airline industry. Consider all those times you got bumped off of a flight, rescheduled, canceled, or offered money to take a different flight. We’ve all been there and it always happens for a reason. This reason is that airlines try to prevent the loss of business and in doing so, they look at dozens of consumer driven behaviors such as how long you travel for, how many weekend flights you take, how many return flights you take, how many flights you take during the week, if you are a frequent flier, and the list goes on. All of these individual data points are used to inform a business decision. The decision is objective. The decision is data driven.

But what happens when we can make decisions using even more data points? Much more data points? Literally, hundreds of thousands if not millions of data points, and did I mention, in real time?

Welcome to the Data Renaissance. Thanks to increasingly efficient and scalable technologies like solid state drives, mobile devices, and cloud computing, the possibilities of data analysis are endless. I mean, just think about how much time we either spend online or connected to a mobile device. This has tremendous implications from travel, health and fitness, to finance, education, and media and the best part is, we haven’t even scratched the surface.

Like I said before, the implications here are huge. Many companies recognize the need to have these comprehensive data sets while having ways of analyzing that data. The digital media and online advertising industry in particular are both in a unique place since their very foundations are dependent upon these high growth technologies; digital devices and the Internet. In this space, companies are racing to a holy grail of advertising where they can leverage millions of individual consumer behaviors to inform brand engagement opportunities and purchasing decisions. Unlike the airline industry, online advertisers can leverage millions of data points instead of those “dozen,” and if done correctly, the consumer experience will be better than it’s ever been before. Everything will matter. Everything will be relevant. We will all become more enlightened and informed to things that interest the most because these new technologies are launching us into the very early, but still uncharted, data renaissance.

(Disclosure: The post can also be found at Lotame Learnings. Lotame is my current employer)

From the Industrial Revolution to the Knowledge Era – Next Up: The Data Renaissance is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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With all of the latest advances in digital media, we are still in the infancy stage when it comes to data intelligence and informative decision making. Consider what is currently happening in the display advertising space. Data and media are continuing to diverge as two separate commodities. On one hand there are data exchanges making cookie files or user information available for purchase. On the other hand, there are media exchanges that make media available for purchase letting businesses use primary or secondary cookie files from other sources to make the ad decision.

This new divergence between data and media, coupled with the notion that bigger is better when it comes to data, makes for an interesting dynamic in today’s industry. Companies are looking to build their own, large cookie pools. In some cases, these are companies with no real technology or mathematical expertise. The natural assumption is that by having large data sets, it would allow for informative ad decision making and that assumption is absolutely warranted. But again, we are only in the infancy stage when it comes to data intelligence and information decision making so it is important to understand all layers involved while pursuing the “data” path.

There is an entire meta-layer between data and media, and that layer is around delivery and optimization. It’s the ability to marry delivery, performance, and backend metrics with data collection and custom audiences. Without this connection, data is meaningless. Imagine for a second you spent $5,000 on the latest and greatest Flat Screen High Definition TV, $600 on the latest Blue Ray DVD drive, but decided to use old audio/video composite cables instead of investing the extra $150 on some good HDMI cables. Your investments in the television and the Blue Ray drive aren’t even close to maximized unless an additional investment is made in the “connection.”

This is unquestionably one of the most important, yet most overlooked aspects of today’s ecosystem. Data is only as valuable as the intelligence or “connection” behind it. In the coming months, the companies that are positioned to efficiently collect and segment data and, more importantly, are able to tie that data in a meaningful way to media through enhanced delivery and optimization techniques, will see an increase in sales, margins, and ROI. By valuing audiences and media separately, there is also a new arbitrage opportunity available to those that truly understand the three aspects of data, media, and delivery.

At the end of the day, companies will need to make smart investments on technology vendors and third party solutions in order to help achieve their goals. As the economy continues to shake out, as costs and expenses continue to be cut, and as resources continue to be reallocated, it is all that more critical for companies to make sound investments that contribute to increased efficiency and productivity. In order to do this, companies will continue to turn towards “data” in order to make informative decisions, to both business and literal ad serving.

(Disclosure: The post can also be found at Lotame Learnings. Lotame is my current employer)

The Maturation of Data Intelligence is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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I created this video a while back for one of my college classes. It’s amazing how far an industry has come in such a short period of time. Even crazier to think that it’s only getting started.

(Need to turn up the volume)

Interactive Advertising Video – How Online Advertising Has Evolved is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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(This post can also be found on the Lotame Learnings Blog)

A recent study came out by Knowledge Networks titled: “Internet users turn to social media to seek one another, not brands or products.” Without even looking at the numbers, I think it’s safe to bet that it is in fact true that “Internet users turn to social media to seek one another, not brands or products.” There are two parts to every statistical experiment: 1) The design and 2) the analysis. In the case of this study, it is a bit troubling to see how biased the experiment is without even reading past the title. What do you think the results would be if I put out a report titled: “Music lovers turn to radio to seek music, not brands or products”, or “Movie lovers turn to movie theaters to seek great new movies, not brands or products.”

The reason marketers are so concerned with “Social Media” is because they realize that this is where users spend most of their time. This is where they “seek one another” to connect, engage, and share (in many cases about brands and products). According to a report from The Nielsen company, which, was distributed at San Francisco Ad tech:

“The Internet remains a place of continuing innovation, with users finding new ways to integrate online usage into their daily lives,” said Charles Buchwalter, SVP, Research and Analytics, Nielsen Online. “In recent years the Internet has changed dramatically as people seek more personalized relationships online. In particular, time spent on social networks and video sites has increased astronomically. Advertisers are starting to positively re-assess the value of the online experience and create more meaningful relationships with consumers.”

And this data cannot be ignored.

Some major highlights from the Global Online Media Landscape report (pdf) regarding online video and social networks:

• The number of American users frequenting online video destinations has climbed 339% since 2003. The unique audience for online video surpassed that of email in November 2007.

• Time spent on video sites has shot up almost 2,000% over the same period.
• In the past year, unique viewers of online video grew 10%, the number of streams grew 41%, the streams per user grew 27% and the total minutes engaged with online video grew 71%.
• There are 87% more online social media users now than in 2003, with 883% more time devoted to those sites.
• In the past year, time spent on social networking sites has surged 73%.
• In February 2009, social network usage exceeded web-based e-mail usage for the first time:

It is a marketer’s job to penetrate the most popular mediums, and make their brands or products visible in the most efficient fashion. In today’s world, Social Media is the most popular medium and it is stillgrowing. So indeed, while users go to Social Media to “seek more personalized relationships“, it will still be a marketer’s job to try and penetrate this medium in efficient and meaningful ways. If a marketer can be successful in creating brand affinities with products in social media (which Lotame has had much success in doing - one example), then everyone wins as the consumer is able to find relevancy and the marketers are able to reach their target audience.

Missing the Mark on Social Media is a post from... Dan Reich - A Student - Learning, Living at the Intersection of Technology, Business, and Innovation.
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