Decoding the new economy

Are adverts right for your website?

Taking advertising on your website can make a few additional dollars for your business, but as an Australian online retailer found there are costs when being an advertiser.

Yesterday’s Smart Company article on Deals Direct being blocked by Google shows why it’s important to understand the purpose of running a business or private website and whether showing adverts on your site is appropriate.

Deals Direct’s problem allegedly arose because an advertiser placed some suspicious code on the Deals Direct site. Malicious web code is designed to infect computer using what’s known as ‘drive by downloads’

Drive by downloads happen through web pages designed to infect visitors’ computers when the page is opened. Thankfully rare these days thanks to improved security in XP and later versions of Windows, they are still taken seriously when they appear.

The real question though is why Deals Direct, a discount online retailer, chooses to run third party adverts. One of the strange things on the Internet is why many websites run Google Adwords at all.

Google Adwords and other contextual advertising looks at a web page’s content to determine the adverts the site will show.

So a website on plumbing will show tend to show adverts for plumbers and plumbers supplies.

That’s great if you are running a site featuring tips on plumbing or bathroom renovations with the aim of making some money from advertising but if you’re the local plumber, having Adwords on the site may result in your competitors ads appearing.

Now there are features in the advertising programs to block the ads of competitors and products you don’t want on your page but these take up time which often isn’t worthwhile given the returns most sites have from Adwords.

Even if you are happy to show competitors adverts, there’s also the question of your brand. Do you really want low rent and tacky ads offering teeth whitening and weight loss messing appearing on a web site that tells the world about your professionalism and great products?

For many businesses running ads on their websites isn’t worthwhile given the advertising returns aren’t worth the management time and potential reputation risk raised by the programs.

Like much in the technology field, whether you run adverts on your site depends upon your business and objectives. Although if your business isn’t an advertising driven model like Smart Company’s, it’s probably best to leave third party ads off your websites as Deals Direct have found.

The cloud of capitalism

A simple bar code reader shows how the business world is changing.

Red Laser is one of over a hundred iPhone barcode readers available in the iTunes store. This seemingly ordinary application shows how freely available information over the Internet is changing markets and the way we do business.

We discussed location based services a few week back and Red Laser is a good example of one of these products. Making the application even more powerful are the other services it plugs into — Worldcat is a world wide database of library catalogues and Google Inventory list stock levels in nearby stores, although the Google service is yet to be launched in Australia.

Just those two services show how booksellers are even more at risk, if you see an interesting book your mobile phone can tell you if it’s at the local library and which bookshops near you have it in stock and at what price.

Booksellers, along with travel agents, are used to the effects of Internet driven competition and now almost every retail and wholesale business is feeling the change. The days of hiding your stock levels, prices and product information now gone.

Much of the Twentieth Century saw businesses hoarding information. In most industries, particularly in the business to business sector, price lists were closely guarded secrets and it took hours if not days of messing around with salespeople to get a quote.

Today, if you mess shoppers around they will find competitors who are open with their prices and products. In most cases time poor customers won’t even be bothered calling you as they will find the opposition’s prices on web and in their mobile phone.

In many respects this is a return to a purer, more honest form of capitalism where traders have to prove their wares on price, availability and quality, not by controlling information in the marketplace.

For the close to fifty percent of businesses who don’t have a website, you have to decide if you still want to be in business as your options are running out.

If you do have a website, a piece of brochure ware asking you to email, call or fax the office no longer cuts it. Technology is overtaking you and the with customer it.

Have a play with services like Red Laser and the various local business products, see how they work and what your competitors are doing because you can be sure your customers are.

ABC Nightlife Computers, 18 March 2010; is it time to upgrade your computer?

Do you need to upgrade your computer? This Thursday at 10pm on the Nightlife we look at YouTube’s dropping support for older browsers.

Title: ABC Nightlife Computers
Location: Across Australia on ABC Local Radio
Link out: Click here
Description: Paul Wallbank joins Tony Delroy on ABC Nightlife computers this March 18 from 10pm to look at why YouTube is not supporting older web browsers and does this mean you’ll have to upgrade your older computers.

We’ll be answering these and many more questions on the show so tune in your local ABC station or listen online at Nightlife’s website.

We love listeners comments, questions and opinions so please feel free to call in on 1300 800 222 if you’d like to add to the conversation.
Start Time: 22.10
Date: 2010-03-18
End Time: 23.00

Ten tips for event organisers

Some ideas to make your conference more compelling in a crowded and difficult market

The events industry is a sector in trouble from Internet driven change— the effects of the Global Financial Crisis coupled with people’s desire to conserve their valuable time make it essential that a conference or event offers something unique and compelling.

Here’s ten ideas to respect your audience and make the next conference one they won’t want to miss;

Know your audience
Understand who you are pitching to. A recent conference I attended had been pitched to small business owners when the content and speakers were more relevant to public relations and media people. As a consequence half the room were disgruntled with the content. I doubt they’d come to another similar event from that organiser.

Get relevant speakers
The biggest turn off for a conference are speakers who have nothing new to say or aren’t relevant to the topic or the industry. Take some time to choose the right presenters. If you have trouble finding appropriate speakers for a session, it’s better to can the session rather than plonk in a participant who adds little or nothing to the topic.

Proper descriptions of speakers
A one paragraph biography and a ten year old photo is not enough. Where is this person’s website and some video clips of previous presentations? If the speaker really adds value, then you shouldn’t be hiding their talents.

Have a proper website and domain
Setting up a domain name for the event is essential if you are charging substantial fees. If your event is free or there’s a nominal charge to cover costs then a WordPress, Facebook or Eventbrite site is fine but if you are charging $2,500 then then a proper domain with a half decent website is essential. Cutting costs here is a big warning sign to potential attendees, particularly in the tech and media sectors.

Maintain a blog
On your site you need to have a blog and it has to be kept up to date. As well as a useful marketing tool it’s a great way to have a dialogue with attendees. You will get questions and comments on your blog and you will be rewarded if you listen to those comments and communicate with your audience.

Create a Twitter hashtag
Rather than let your audience guess a hashtag and risk having four different streams running concurrently, publish the hashtag early on your website. This also creates a pre event buzz and gives you the opportunity to gauge the markets view of the event.

Think twice about a Twitter wall
Feeding the Twitter stream to a screen behind the speakers can be a great idea but it has the opportunity to be a train wreck. If the presenters don’t have experience in dealing with live comments or you have a room full of mischievous Tweeters intent on hijacking various sessions then you should think twice before doing it

Wireless networking is essential
Audiences need wireless networks and even high cost events often fail to provide them. If you are charging serious money for an event then buy some routers or, better still, choice a venue that’s realised the it 1980s are over. Also, don’t mess people around with complex logins, the odd leech sitting outside stealing your Intenets is better than irritating a room full of paying customers.

Post your presentations
We’re bound to have missed something so follow up with posting the presentations online. Depending on the event you may choose to lock them behind a paywall accessible only to conference attendees and supporters and that’s your call. However the lesson from TED is if your event was truly valuable, having the videos free to the public is going to help your conference in future years.

Allow discussion
Your audience is smarter than you and your presenters. By giving them ample microphone time to comment or question the speakers you add value to the event and maybe even find smart people for your next conference. Lecturing the audience only works if the presenter is an unchallengeable leader in their field. This factor is even more important if you are running a social media function where the speakers have spent the last hour proclaiming the importance of dialogue.

Giving the audience the stage is about respecting their intelligence, and we all want smart people to attend our events. Respect cuts even deeper, event organisers need to respect the technology and the economic changes that are challenging the events industry.

Those who do remember their job is to add value to smart, motivated folk will be those who prosper in a crowded, challenged market.

The lost generation of computers and Microsoft’s new opportunity

Will Google help Microsoft capture the lost generation of computers. Google’s dropping of support for Internet Explorer 6 is a great opportunity for Microsoft

From March 13 Google will cease supporting older browsers like Internet Explorer 6. This presents a great opportunity for Microsoft to grab the lost generation of computer users.

The lost generation are the computer users who’ve skipped the last few five year cycles of computer upgrades. There’s two reasons for this; Windows Vista’s well deserved poor reputation and the concept of Good Enough Computing.

While Vista has a lot to answer for, good enough computing iss the main villain — for most household and business users, a Pentium IV running Windows 98 or XP with Internet Explorer 6 was good enough for their daily computer needs.

So Google’s move to abandon older browsers is going to force many of that lost generation to upgrade. This means those running computers more than six years old will probably be looking at new systems rather than the expense and compromises of upgrading.

A year ago, the smart money would have been on many of those new machines being netbooks running Linux with a good proportion of Apple Macs, however Microsoft’s release of Windows 7 has turned the tables and it’s fairly safe to say most upgraders will be sticking with Windows.

Which is a great opportunity for Microsoft to claw back market share and revenue although this doesn’t come without its challenges.

Microsoft’s challenge lies in convincing buyers to upgrade their other software. Many of these people will baulk at spending several hundred dollars on new office, photo editing or entertainment software and given much of it is available as cloud based systems the asking price will be steep.

For home and business computer owners the next month will be the time to consider if your older computers are due for an upgrade. If you find they stop doing the things you want or are are slow and unreliable then it might be time to consider your upgrade options.

The elephant in the room; why online publishing is very sick

Depending on cheap or free labour is a doomed business model and this is a problem for online publishers

Media 140’s Sydney meetup last week attempted to discuss the future of journalism. While it wasn’t really successful, it did expose the fundamental flaw in the online publishing model and the other crowdsourcing business ideas that rely on cheap or free labour.

All three panellists agreed that as publishers “The sustainability of our business is very much linked to the quality of content.” because with several million online voices a site needs compelling and relevant content to attract and retain readers.

Yet every panel participant agreed the cost of content is falling and in many cases is now free.

There lies the paradox; if content is so valuable, why is it so cheap or even worthless?

The model for online publishers is the same as it was in the days of every city having three evening newspapers or when the six o’clock TV news was the most watched show on television. Compelling content attracted readers and viewers which in turned attracted eager advertisers.

In the days of metro evening newspapers and the six o’clock news there were substantial barriers to competition with printing presses, broadcast licenses and distribution networks required. Today anyone who can afford $10 a month for website hosting can be a publisher.

Worse, the rates for online advertising are plummeting and with the site owners only making a few dollars there’s little for publishers, let alone the content creators.

Which brings us back to the fundamental problem, if there isn’t any money for those who create the content then there’s little point in the middle men distributing it.

Many of today’s online publishers are like the loom weavers of the early 18th Century who derived a short term benefit from the change that eventually destroyed them. The same forces that make journalists work for nothing are the same ones that will render the bulk of publishers insolvent.

And that could be where the future of journalism, writing and publishing really lies — the bulk of the industry eking out an existance providing commoditised, generic pap and a few niche publications with readerships that attract good incomes that in turn can pay a small number of writers.

That’s certainly the model the panel at Media 140 are betting on and I hope they all do well.

The Future of Journalism

Many occupations are faced with free or cheap labour swamping their marketplace. Journalism is one of those trades. Media140 met in Sydney to discuss exactly where the future of journalism lies.

Last week’s Media 140 meeting in Sydney looked at the future of journalism and how publishers are paying, or rather not paying, contributors to their online publications.

The evening was well documented by Martin Cahill and the message was clear — publishers are not going to pay for content because even if they want to they can’t afford it.

The prevailing view was journalists will have to learn how to multi task; but given YouTube is even more poorly rewarded than online journalism, it’s unlikely sites will be any more generous to video or audio contributions than they are to text contributors. Which only suggests a future of journalists doing more work for no money.

Valerio Veo, Head of SBS News and Current Affairs Online pointed out SBS is paying a 19 year a $1000 per contribution for covering Obama’s visit to Indonesia.

Ignoring this is pocket money in terms of sending a camera crew and traditional reporter, the fact SBS are one of the few Australian organisations paying online contributors suggests ABC Managing Director, Mark Scott’s, view at a previous Media140 that only government supported organisations will be able to afford to pay journalists is part of the future is correct.

So what is the future of professional journalism? Will it be restricted to a few subsidised outlets? Is it the gifted amateur contributing for their love of the masthead? Or is it that of the professional pushing their own or their employer’s agenda?

Maybe journalists will become editors cleaning up the shoddy contributions of not so gifted writers that have the only benefit of being free. Could it be that curating other people’s content will be the role of future journalists?

Or perhaps journalists are the new poets, starving in garrets and working in desperate jobs while waiting for the phone call from the ABC, BBC or PBS, penning great works that will lie undiscovered on obscure blogs which will only be found after their passing?

We didn’t really glimpse the answers at Media140 and this is an important discussion to have as the rise of the digital sharecropper isn’t confined to journalism.

Many professional and white collar occupations are going the same way and we need to understand what this means for large parts of our economy. Even if we choose not to discuss it, it’s the reality we face.

Author: Paul Wallbank

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