Tag: media

  • They won’t respect you in the morning

    They won’t respect you in the morning

    So after five years about posting about food, travel, tech, fashion or reverse cycle widgets you’ve being listed by Forbes Magazine as one of the most influential voices in the field.

    Now every morning in your inbox is another pitch from an agency offering you freebies and access in return for posting about their clients products, some are great while others are strange.

    Welcome to the world of Influencer Programs, a strange hybrid bought about by rise of social media and the collapse of printed news. As overwhelmed salaried journalists at established media outlets have less time to deal with hundreds of PR people desperately trying to get their attention, those with decent social media followings start to look attractive.

    The influencer theory

    A key part of the PRs strategy in engaging with social media outlets are the influencer programs, where the agencies trawl Instagram, Facebook, Twitter and the other services to find those with large followings and then try to induce them into promoting their clients’ products.

    These influencer programs are not anything new, while today we associate them with Kim Kardashian and Will.I.Am, in the 18th  Century Josiah Wedgwood publicised his sales to the royal courts of Europe to generate sales for his earthenware and a hundred years later Mark Twain endorsed cigars in journals across America.

    So congratulations on being the modern Mark Twain, now you have to decide if you want to play with Fat Fee Media and be part of their influencer programs.

    The land of the free

    Most of the time the initial approach from the nice folks at Fat Fee will try to get you to work for free in exchange for a shiny laptop, a free feed or even an overseas trip to The World Reverse Cycle Widgets conference.

    That might work for you, if you have a full time job and the food blog or fashion Instagram feed is a hobby then this exactly what the influencer programs were originally designed around although there might be some quirks there

    Should the blog be a business, or you take the distinctly unfashionable attitude that your time as a creative content creator is actually worth something that Fat Fee Media should pay for, then things get messy.

    People die of exposure

    The first response for payment from the nice folk at Fat Fee Media is that working with their client will be wonderful exposure for you.

    In some respects this is probably true, however the reason Fat Fee Media has come to you is because their clients need exposure more than you do. Just the fact you’ve been listed as an ‘influencer’ shows you have credibility on the interwebs.

    One of the traps many of us with consulting businesses on the side is the belief that doing a favour for BigCorp will open future paid opportunities. Sadly, the truth is somewhat different.

    Pay the writer

    “It’s the amateurs who make it tough for the professionals” says Harlen Ellison in his wonderful Pay The Writer rant. “By what logic do you call me and ask me to work for nothing.”

    Ellison’s point is well made and those working for free are marked down as amateurs by the large agencies. Be under no illusion, when the paid consulting, speaking or writing gigs become available, the folks giving away stuff for free on the influencer programs won’t be getting them.

    The world of control freaks

    Another aspect of the influencer program world is the sheer control freakery. The gold standard for this was Samsung’s infamous Mob!lers Program where the South Korean company threatened to strand a group of Indian bloggers in Berlin if they didn’t act as unpaid company spruikers.

    While Samsung’s behaviour was extreme, it’s by no means unusual. It’s common in these programs’ agreements to have ‘exclusivity’ or ‘no disparagement’ clauses.

    The exclusivity clauses are particularly pernicious because they limit the scope of your writing and could even lock you out of future paid work in the industry you cover.

    Controlling the copy

    Another weird, but common, part of the PR control freakery in influencer programs is the determination to vet everything so only Nice Things are said about their clients.

    This never ends well as the agency and its client spend the next six weeks rewriting your work. Inevitably the results look like something published in the Ministry of Public Works house newsletter.

    Even if your blog or Instagram feed is just a hobby resist any request from agencies to pre-vet your copy. If they insist, send them your advertising rate card and tell them to hire a copywriter.

    You can’t say bad things

    The ‘non-disparagement’ clauses are equally pernicious. One of the curiosities of the social media world is that corporates are horribly risk averse.

    As a consequence they don’t want the possibility of bloggers or the Twitterati saying nasty things about them and the non-disparagement clause becomes part of almost any agreement.

    These clauses are usually far ranging, not only do they stipulate a blogger can’t say something less than glowing in a post but they also restrict any social media commentary on that business.

    A recent agreement I was presented on behalf of one of the world’s biggest banks required me to say I wouldn’t say anything nasty about them. This is a curious way of shutting people up but one can’t blame them if it can be done cheaply for the cost of a meal or conference invite.

    Happy shiny people

    Ultimately the social media and digital media worlds are about happy and shiny. Given they are largely controlled by large corporations, this isn’t surprising and much of the attitude that you shouldn’t say bad things online comes down to how food, fashion and travel bloggers have regurgitated nice things rather than been genuine critics.

    To be fair to the new breed of online writers, the dumbing down of travel and food writing was well underway in the mainstream media before the arrival of the internet. One could argue that mastheads devaluing their brand with puff pieces was one of the reasons alternative online media, particularly in food blogging, became so successful so fast.

    A broken model

    In truth, the whole social media engagement industry is broken, it depends on poor measurements and old school marketers applying 1960s Mad Men broadcasting methods to an industry that’s diffuse and diverse.

    Over time, new more effective models will develop but the for the moment this is the way business is done as we wait for the new David Sarnoff.

    Ultimately for influencers the question is whether you’ll keep your own respect and that of your audience. Just don’t expect the corporates and their agencies to respect you in the morning.

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  • Goodbye to the media buyers long lunch

    Goodbye to the media buyers long lunch

    Yesterday Decoding The New Economy posted an interview with Michael Rubenstein of AppNexus about the world of programmatic advertising and being part of a rapidly growing startup.

    The whole concept of programmatic advertising is a good example of a business, and a set of jobs, being disrupted.

    Media buying has been a cushy job for a generation of well fed advertising executives. David Sarnoff’s invention of the broadcast media model in the 1930s meant salespeople and brokers were needed to fill the constant supply of advertising spots.

    Today the rise of the internet has disrupted the once safe world of broadcast media where incumbents were protected by government licenses and now the long lunching media buyers are finding their own jobs are being displaced by algorithms like those of AppNexus.

    A thought worth dwelling on though is that media buyers are part of a wider group of white collar roles being disrupted by technology – the same Big Data algorithms driving AppNexus and other services is also being used to write and select news stories and increasingly we’ll see executive decisions being made by computers.

    It’s highly likely the biggest casualties of the current data analytics driven wave won’t be truck drivers, shelf pickers or baristas but managers. The promise of a flat organisation may be coming sooner than many middle managers – and salespeople – think.

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  • Business in an age of data abundance

    Business in an age of data abundance

    I’m preparing a corporate talk for next week on the changing economy and one theme that sticks out is how the Twentieth Century was defined by cheap energy and physical mobility as mains electricity and the internal combustion engine became ubiquitous and affordable.

    The picture accompanying this post illustrates that shift, Sydney’s Circular Quay a hundred years ago was just at the beginning of the automobile era. The previous fifty years had bought trams, the telegraph and reliable shipping but the great strides of the Twentieth Century were still to happen.

    At that stage the steam engine and advances in electrical transmission had bought reliable power to the masses, although it was still expensive. What was to come over the next fifty years was that energy was about to become cheap and abundant. That drove the suburbanisation of western societies and the development of industries around the availability of cheap power and a mobile workforce.

    At the time though information was still expensive, the control of broadcast networks by a few license holders and print operations by those who could afford the massive costs of producing and distributing magazines or newspapers made data difficult to get and worth paying for.

    Today we’re at the start of a similar shift in information; it’s no longer expensive or difficult to obtain.

    What that means for the next thirty years is what industries will develop in an economy where information is basically free and ubiquitous. Just as cheap energy created the consumerist economy, we’re going to see a very different environment in an age of cheap data.

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  • Netflix and the global entertainment network

    Netflix and the global entertainment network

    Streaming video service Netflix is looking to launch in China reports Bloomberg Business.

    The Chinese joint venture to be run with Wasu, a company backed by Alibaba founder Jack Ma, looks to increase Netflix’s global footprint.

    Netflix plans “to be nearly global by the end of 2016,” the article quotes a company spokesperson answering questions about a possible China partnership.

    The Netflix model is a major departure from the established broadcast television and movie business where studios and producers would enter distribution agreements with local TV stations and theatre chains.

    With Netflix and the streaming model, the licensing of rights to local outlets becomes largely irrelevant with the producers – which increasingly includes Netflix itself – able to cut out the local licensees.

    A similar thing is happening in sports, one of the mainstays of broadcast television, where the professional leagues are taking control of their own content and leaving the networks, at best, minor players.

    Neflix’s move is part of a shift that’s affecting many industries, including those like broadcast television that thought they were untouchable.

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  • User generated content starts getting expensive

    User generated content starts getting expensive

    Ten years after being founded YouTube is facing competition as new sites are being setup or existing video services start aggressively courting creators reports Variety magazine.

    YouTube is the poster child of the user generated content movement where it’s largely unpaid contributors who generate the material that people  watch on the service.

    This model works fine as long as it’s amateur cat videos people are watching but when as it becomes a big business the justification for not paying content creators becomes flimsy.

    Google’s management recognised this some time back and started rolling out its own partnerships with creators to add more income than the often tiny advertising revenues most earn.

    Now it turns out those popular video bloggers are being tempted over to other sites and for YouTube the cost of premium content is about to get expensive.

    For the Silicon Valley businesses is requires a change of culture as they simply don’t like paying creators; in the tech startup view of the world it’s only coders, founders and few lucky support staff who get the rewards while the bulk of people who add value to the product are treated as commodity ingredients.

    For a period it was difficult for media startups to get funding unless they had a free source of user generated content, as Buzzfeed founder Jonah Peretti revealed in 2012.

    Tech investors prefer pure platform companies because you can just focus on the tech, have the users produce the content for free, and scale the business globally without having to hire many people.

    The movie studios and record companies on the other hand have a culture of paying their artists and production staff, despite their reputation of exploitation and stinginess.

    It may well be that we’re past the golden era of user generated content and the free lunch for the sites that depend upon free materials.

    If it is, then standards on sites like YouTube can only improve even at the costs of Google’s profit.

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