KevinJoyner.com/blog

Social Media and Third Sector Fundraising in a Recession

2009-03-22T19:44:00.004Z

An inflated number of voluntary and community organisations find themselves dependant now more than ever in recession on funding from individuals. In the profitable online sphere, the volume of potential donors for which these VCOs are competing appears to be slowly dwindling. This trend, compounded with the loyalty of individual donors in recession places the relationship between the individual and the VCO at the heart of third sector fundraising. Social media is ‘relationship media’, and as such it has a natural and vital role to play here; but by social media’s special nature, its importance to third sector fundraising in a recession has commercial implications for the digital agency with third sector clients.

Fundraising in Recession

The role in public services for voluntary and community organisations has grown under the new Labour government, as the opportunity to provide those services has been opened up to the private and voluntary sectors.¹ The Financial Times reported back in 2007 that, “private and voluntary organisations now supply at least £44bn worth of public services”.²

The related increase in government funding available to VCOs has seen the number of registered charities in the UK grow dramatically, and at an increasing rate: as visualised in the chart below, there were 120,000 registered charities in England and Wales in 1994/95, 164,195 in 2006, and there are 189,009 today.³

The main sources of income for VCOs can be identified by four categories. These are government funding, corporate funding, funding from investments and legacies, and funding from individuals.

It is an abundance of government funding that has grown the third sector in recent years, but we find ourselves now in a recession, in which this source of income for VCOs, as well as another two out of the main four, is in decline.

In recession, the budgets of both central and local governments are pressurized and funding for (both private and) third sector service initiatives is cut. Similarly, corporate funding dries up, as smaller corporate profits, which are related to economic performance, result in a reduction in corporate giving. Investment and legacy income also begins to decline, as assets (equities, bank deposits, and property) become less valuable and susceptible to lower interest rates.⁴

We have a situation now, in recession, then, where an increasing number of competing charities are left increasingly at the mercy of the fourth and final category of income: funding from individuals.

When it comes to fundraising from individuals, next to the canvassing of high net worth donors, online fundraising is on average the second best method for return on investment.⁵ Maximising online fundraising then should be a focus for VCOs during recession.

Examining the UK market for online donation, and even, more generally, examining UK online interest in charities, however, uncovers some worrying trends. As the following graph shows, interest on Google in the search terms charity or sponsor or donation or “online donation” in the UK has declined consistently year-on-year since 2005.

One might suggest that perhaps VCO brands, rather than generic terms, have grown in the online space since 2005, but looking at the entire charitable and non-profits category of Google searches, which includes brand terms, a similar trend is revealed: consistent decline year-on-year since 2005.⁶

We can conclude from these trends of decline in online interest in donation and charities that the base level volume of online donation from individuals is declining. It is important, then, for VCOs in their online fundraising efforts to attempt to secure higher value or repeat donation from the same individuals.

The pressure to achieve this is compounded by the current climate of recession. Evidence from other recessions is that individuals are less promiscuous with their giving during a downturn: they focus on causes that they already support.⁷

Right now, then, more VCOs than ever have fewer than ever potential donors; and of those potential donors that are available, fewer of them are new donors. Moreover, from those donors that have been secured, VCOs increasingly must squeeze more value.

This situation puts emphasis on one thing: the relationship between the VCO and the individual donor. It’s not a new relationship, not one that has to be won; it’s an existing relationship, one that has to be preserved. More than preserved, this existing relationship has to be developed into an increasingly lucrative one for the VCO.

The Role of Social Media

Social media has an important role to play here, as fundamentally it is the expression and cultivation of the relationships that exist between individuals, and between individuals, brands, products, and services.

There is a stronger relationship between an individual and an organisation when the communication between that individual and organisation is a dialogue, rather than a one-way broadcast from organisation to individual. Social media, which has at its core user-generated content, gives voice to the individual, thus facilitating dialogue back and forth between individuals and organisations. It should be embraced as part of any strategy that seeks to promote strong relationships between those parties.

Moreover, with the growth of social media, there has come to be an expectation on the part of the individual of opportunities for dialogue with brands and product and service providers. Not to fulfil this expectation would be to jeopardise the strength of the relationship that exists between the organisation and the individual. Oliver Westmancott puts it simply: “If you present your content in a way that doesn’t make it easy for people to respond to they just won’t, they’ll engage with other issues and organisations.”⁸ Those “other issues and organisations” will be the ones that do provide a platform for dialogue.

Another effect the growth of social media has had on the attitudes of the individual is the trend, as Rachel Beer describes it, for people to use social media “to get the things they need from each other, rather than from traditional institutions like corporations”, or indeed VCOs.⁹ Increasingly, individuals value the opinions of other individuals more than those expressed by the organisation. Organisations should therefore seek to provide a platform on which individuals can be evangelists for the organisation’s cause.

Not only does social media then both facilitate and demand conversation, it can be used to strengthen relationships in other ways: through the opportunity for organisations to grant individuals privileges, such as membership of a community whose shared interest is the work of the organisation, and personalised information about the individual’s role in that work. These things add value to that which the potential donor gets in return for his or her donation.

Social media can be used to achieve specific goals in third sector fundraising. For one, it can allow organisations to connect donors with recipients. By demonstrating more vividly the impact of a donor's 'investment', this connection will reinforce and augment the value of donation in the mind of the donor.

Social media can also be used to improve transparency and legitimacy in an organisation's work. The communications that constitute a social media environment are by their nature “open and equitable, and require […] the transparent sharing of information, honest discussion of […] successes and failures, highs and lows – warts and all – rather than the polished diplomacy of PR, the hard sell of advertising or the push of marketing.”⁹ As well as rendering communications transparent, dialogue about the work of an organisation can also have the effect of democratising that organisation. It gives a donor the opportunity to question, criticise, and approve the work of the organisation. More to the point, it gives the organisation the opportunity to respond to those questions, and to act on that criticism or approval. A more transparent and legitimate organisation is a more attractive one to donors, and more attractive to donors means more likely to receive support.¹⁰

The Implications for the Digital Agency of the Value of Social Media

Social media then has a valuable role to play in third sector fundraising, especially during recession when the relationship between the VCO and the individual is paramount. Apart from anything else, the expectation on the part of the individual of opportunity for dialogue with the organisation, and the need on the part of the organisation to provide a platform for individuals to be evangelists, mean that VCOs cannot now afford not to invest in social media: they risk damaging their relationships with their donors if they do not.

Any agency that describes itself as a ‘full-service’ one must therefore be able to provide comprehensive social media services. Investment will be required in the agency’s capacity to provide these services, and in their marketing of them; at the same time though, these services should be increasingly easy to sell to third sector clients.

That said, when it comes to selling social media services, agencies will still have to consider carefully how they’re going to prove the return on investment in social media to their clients. Some forms of social media, exemplified by the Dogs Trust’s Facebook application (http://apps.facebook.com/dogstrust/), promote direct donation, and there are opportunities to monetise social media and track the revenue it generates. An organisation can turn social media content into advertising inventory, and it would be easy to put tracked links to donation pages in a twitter feed, for example. However social media is not particularly suited to this kind of advertising. As has been discussed, it is honest conversational communication; and sales (or even fundraising) is not generally at home with honest conversation, or at least not with the honest conversation that is conducted between individuals. It would in most cases be a counterproductive misuse of social media to attempt to advertise with it.

One solution to the problem for the agency of proving return on investment in social media, when that return is rarely direct, is for the agency to establish with the client more qualitative objectives and measures of success for social media investment. All VCOs value their relationships with individual donors. Success with social media can therefore be attributed where it leads organisations to “build better relationships”, to “participate in conversations where” they “hadn’t previously had a voice”, and to “move from a running monologue to a meaningful dialogue” with potential donors.¹¹ These successes all involve participation on the part of the organisation; the organisation will know for itself when they have been achieved. When asked, “How successful has it [social media, specifically twitter] been in terms of raising awareness, attracting donations and finding homes for dogs?” Alex Goldstein of Dogs Trust responded:

The answer to this all depends on how you measure success. To us, it’s been very valuable. People are increasingly coming to us for advice on obtaining or caring for dogs and we’re able to give that or direct them to where they can find it; that’s certainly part of our job description.

We are also able to build enthusiasm in new supporters who hadn’t heard of us before. And, best of all, we were able to rehome a dog.¹²

Goldstein recognises Dogs Trust’s success here, because, in the way success was measured, he was part of it.

It’s not surprising that the measurement of success with social media is linked to the client’s participation in it. Unlike the views and clicks of advertising media, social media is not a commodity in which the digital agency can deal. It's an activity, that clients need to be enabled in, and need to learn to perform for themselves. True dialogue, connection, transparency, and legitimacy cannot be held or made or achieved by proxy. Digital agencies will need to educate and to enable clients in the practices of social media, so that, contrary to the nature of ‘agency’, clients can participate in it for themselves.

If the digital agency does its job properly, then, by being a good teacher, there is a limit to the amount that can be charged to the client for a single social media service. Sure, a client can be charged a consultancy fee over time, but the agency cannot teach the same lesson to the same client in perpetuity. Social media services are finite in nature.

What’s more, regardless of how good a teacher the agency is, clients will always be good pupils to varying degrees. Social media services provided by the agency are related to the abilities of the client. If the digital agency is to deliver quality, then it should be prepared to have to work with clients for as long, and only for as long, as it takes in order for them to become proficient. This has the potential to make billings for social media services unpredictable. Agencies might want to attempt to charge minimum fees for each social media goal, but when social media goals are qualitative as has been discussed, they can be difficult to define in contractual terms.

Most of all, since social media services are an education, and a process of enabling, while finite in billings, they are virtually infinite in value to the client. They must therefore be charged out to the client at a premium: at a cost that represents their value to the client over time. This premium – or investment, as it should be seen – needs to be justified to the client in an agency’s marketing and pitch activities: education, therefore, begins from step one.

Like any business, VCOs will be feeling the pressures of the economic recession. Online fundraising from individuals will be important to them, and less than ever before can they afford to burn bridges with potential donors. Maintaining and building on existing relationships, keeping people donating and donating more – these are the tactics not only for survival but for success. Social media has a valuable role to play in relationship management, and indeed a vital one, as individuals are coming to expect and rely on the communications that form social media; it must therefore be integral to third sector communications strategy. The agency will need to educate at every step of its providing social media services: with its marketing of the services to prospective clients, with the establishing of objectives, and with the provision of social media services themselves.

1 National Council for Voluntary Organisations, ‘Bringing markets into public services’, Third Sector Foresight, http://www.3s4.org.uk/drivers/bringing-markets-into-public-services (2008)
2 Nicholas Timmins, ‘Private sector role in public services explodes’, The Financial Times, http://www.ft.com/cms/s/0/0469c6c6-a2d4-11dc-81c4-0000779fd2ac.html?nclick_check=1 (2007)
3 National Council for Voluntary Organisations, ‘Number of general charities’, Third Sector Foresight, http://www.3s4.org.uk/drivers/number-of-general-charities (2008); and Charity Commission, Register of Charities, http://www.charitycommission.gov.uk/Showcharity/RegisterOfCharities/RegisterHomePage.aspx?Language=English (2009)
4 National Council for Voluntary Organisations, ‘Economic downturn’, Third Sector Foresight, http://www.3s4.org.uk/drivers/economic-downturn (2009)
5 Sue Fidler, ‘IT Intelligence: Online Fundraising’, Third Sector, http://www.thirdsector.co.uk/Resources/Finance/Article/834817/intelligence-Online-fundraising/ (2008)
6 These two graphs, which reflect interest in search queries and a category of queries, are taken from Google Insights for Search. They plot the volume of searches on Google as a proportion of all searches, normalised over the time period on which the graph reports.
7 National Council for Voluntary Organisations, ‘Economic downturn’, Third Sector Foresight, http://www.3s4.org.uk/drivers/economic-downturn (2009)
8 Oliver Westmancott, ‘Social Media Optimisation for Charities’, Inspiration and Expertise Blog, http://www.iedesign.co.uk/blog/social-media-optimisation-for-charities/ (2008)
9 Rachel Beer, ‘Why charities need to use social media’, CharityComms, http://charitycomms.org.uk/articles/insider_secrets/why_charities_need_to_use_social_media (2009)
10 Megan Griffith, NCVO Third Sector Foresight, How online communities can make the net work for the VCS, http://www.ncvo-vol.org.uk/uploadedFiles/NCVO/Publications/Publications_Catalogue/Sector_Research/ICT%20Foresight%20-%20social%20networks.pdf (2007)
11 Aaron Uhrmacher, ‘How to Measure Social Media ROI for Business’, Mashable, http://mashable.com/2008/07/31/measuring-social-media-roi-for-business/ (2008)
12 Graham Charlton, ‘Should more charities be making use of Twitter?’, Econsultancy, http://econsultancy.com/blog/3258-should-more-charities-be-making-use-of-twitter (2009)

Social Media is for Conversation and Consumption

2008-10-14T21:54:00.006Z

I've just added an 'AddThis' bookmarking button to the bottom of my blog posts and I'm keen to test it - only first I need something to bookmark. Looking back through my previous blog posts however I can't say I feel proud enough about any one of them to want to draw new attention to it.

So let me quickly sketch out a new idea:

Looking back at old posts reminds me that I have previously fancied myself as some sort of amateur journalist. Indeed that which I've written about the relationship between blogging and journalism has been founded partly on some notion of equality between journalists and bloggers.

The truth of the relationship I think actually is that all journalists can blog, but that not all bloggers can be journalists. After all anyone can blog - that's a fundamental idea behind blogging - but we know very well that not everyone has the talent for worthwhile journalism.

If one examines blogging in its lowest common form one will find something merely social and nothing more; certainly nothing truly literary.

And so we mere bloggers should have no pretensions. We should stick to what we are: members merely of society. And here we arrive at what blogging is really suited to: conversation and consumption, and perhaps best: conversation about consumption.

By way of emphasising my point, I'd like to add that I really don't think the proprietors of British Subway franchises really understand the foot-long Italian BMT quite like those of the North American ones.

Phorm and the Open Internet Exchange

2008-02-03T18:43:00.001Z

I met a week or two ago with a couple of guys from internet technology company Phorm. They presented what struck me as an exciting proposition: a network of business relationships, of which phorm would be the administrators, named the Open Internet Exchange, or OIX.

Phorm's OIX will involve publishers, advertisers and, crucially, internet service providers in a way that will allow advertisers to target internet users whose behaviour on the internet identifies them as having relevant consumption interests. This is great: behavioural targeting identifies consumers who have actually started down a particular road to consumption (purchase, subscription, or whatever); rather than just identifying those who are only likely to start down this road, because, for example, of their demographic.

With behavioural targeting, once the user is identified as a target, they can be shown relevant advertising while they're viewing any internet page, not just pages whose content is relevant to the marketing proposition. The advantages here are that publishers can monetize all their content, even that which isn't easily categorised and wouldn't otherwise be valuable; and advertisers can avoid the clutter of competitive ads that forms on the pages whose content pertains to the advertising.

But behavioural targeting is something that advertising networks do already. So what makes the OIX different? Exisiting methods of behavioural targeting work like this:

a user suddenly appears, browsing one of the sites in an advertising network

he or she exhibits while on that site a degree of behaviour that identifies him or her as a potential target: he or she conducts a relevant search, clicks on a relevant ad, or looks at a relevant page

when he or she next appears back on one of the sites in the advertising network, he or she gets shown a relevant ad

The limitation here is that the behaviour of the user is observed only while the user is in the advertising network. Some eighty or ninety per cent of the internet population might be reached at least once each month by traditional advertising networks, but only a fraction of a user's total internet behaviour is actually observed by any one network. This limits the volume of relevant users available, and the accuracy of their match to the advertising.

Phorm's OIX, which involves internet service providers, will make use of the ISPs' data on users' entire browsing histories: it will 'see' all the pages they visit, and all of the searches they make. This will allow adveritisers to define and successfully target a practically infinite number of behavioural advertising 'channels' - combinations of keywords and URLs that define specific behaviours.

Sounds good, doesn't it? - like a more highly evolved approach, that makes use of a massive resource that has been under our noses all along. But, while it employs one resource of the ISPs, for it to work Phorm's OIX must sustain another: the user. While the user won't have to download any software onto his or her computer, and no personally-identifiable data will ever be recorded, there will be cries of 'Big Brother is watching us!' Moreover, users will be generating a revenue stream for all those involved in the OIX. So what's in it for them?

Well firstly, we all see advertising anyway. What Phorm is proposing with the Open Internet Exchange is a way for us all to see more relevant advertising - advertising that might even be helpful!

Secondly, Phorm is in a position to provide the user with whatever services that can be derived by the monitoring of his or her internet behaviour. The obvious ones here are internet security services, like warnings against phishing websites.

Given how important it will be for them to preserve the ISPs' good relationships with users - to keep the user sweet - I wonder if Phorm will be able to come up with anything else ground breaking, by way of services for the user. Indeed, they may have to come up with something of this nature before the OIX will take off. Whether Phorm can provide something where ISPs have long had the opportunity to do so already will be interesting to see.

A step in the right direction

2007-07-26T19:23:00.001Z

So now i can publish to my blog, which is shared on facebook, from my
mobile! I can hardly wait for the future. My mobile device and the
internet are only going to get better. But how it'll all be monitized
- now there's a good question... and one not easily answered on my
mobile's keypad.

--
http://www.kevinjoyner.com/

Keeping ahead of the advertising

2007-03-15T14:59:00.000Z

It was reported on Tuesday that the entertainment giant Viacom, which owns MTV and Nickelodeon, will be launching a billion-dollar lawsuit against YouTube and its owner Google. YouTube, Viacom argues, does not take sufficient responsibility for removing copyrighted Viacom content from its video sharing site.

The most common response to this news that I have read about has said that Viacom is making a mistake: that they are struggling against a market whose natural flow is in fact in their best interests. As Jeff Jarvis observes, Viacom is 'trying to spread stupid', by criticising the actions of its own fans, who are publicising Viacom content.

The clever action, so goes Jarvis' argument, would be for Viacom to do as CBS and, in fact, the BBC are doing: They are condoning the posting of copyrighted content on YouTube, not only by leaving it on the site, but by replacing it wherever it exists with high-quality copy. CBS's and the BBC's idea here is to use YouTube for the marketing tool that it provides, concentrating YouTubers' attention around single high-quality copies of their content.

As one comment on Jarvis' blog puts it, however, the argument is not so one-sided: YouTube is illegally hosting the best of Viacom content, deriving its own potential revenue from it, and developing but containing its own audience - because they don't necessarily have to go anywhere else to get the Viacom content they want.

Basically, Viacom aren't stupid, they do have a point, and perhaps in their case they should be taking the action that they are.

The CBS/BBC model is a good one, but the merit of it is found not so much in the 'clever' strategy itself, as in what it intends for the quality and nature of their content. The secret to making use of YouTube as they plan, will be for CBS and the BBC continually to offer, on their own channels, fresh, appealing product, which competes with what should be regarded only as its own advertising on YouTube.

It will be a shame if Viacom wins a lot of ground against YouTube in the outcome of this lawsuit: the CBS/BBC model is one that will only drive better content.

God save the queen

2007-03-05T20:42:00.000Z

I want to share a discussion that a friend and I had this weekend about some of the differences between our prime minister, and the US president. It's worth thinking about, given the political events of recent years, in which our prime minister has assumed so much power as an individual, and in which he has been so close to George Bush.

We were talking about the treatment the two leaders of state receive from the political institutions of which they are part. 'Politics' is of course supported by the media, so part of this treatment must be attributed to treatment by the media.

Our standard of journalism is higher, I believe, than in the US, but it would be very wrong indeed to suggest that there's little criticism of Bush in American politics.

'But we don't revere him like they seem to,' my friend suggested. She was talking about the ceremonial treatment of 'Mr President' in the US.

In the UK, we have little such ceremony to apologise for our political leader: either there's no ceremony at all, or else our ceremony surrounding the prime minister is actually in itself more often critical of his position. Our politics treats the prime minister in a way that puts him almost permanently on the defensive. With the sorts of institutions epitomised by the televised prime minister's question time, and by the dragging of our prime minister onto Radio 4's Today programme, I think our political leader almost always has a struggle, to prove himself.

There's some relationship here, we thought, between the treatment of the prime minister in our politics, and the fact that we have a ceremonial head of state; where the Americans lack one, other than their president. It goes some way in suggesting an explanation for American reverence of their president: for us, it's our queen who's to be revered; but the Americans have no institutional point of reference higher than the president, except perhaps for God!

This explanation asserts that we necessarily have a need and fixed capacity for reverence. Whether or not that's the case is the same question as in asking, would we necessarily revere politicians more, if we didn't have a royal monarchy? I believe we probably would, but whether this capacity for reverence is in our fundamental human nature, or rather induced by our sensationalist media is a more difficult question. Perhaps the need is natural, but the capacity is media-controlled. I believe that the media reflects human nature, so I'd say certainly that both are at work in reverence.

Were we to be without our royal monarchy, I'd expect most of our reverence to be diverted to popular celebrity; already celebrity attracts the greatest share. Perhaps this is a reason why worship of celebrity as well is healthy for politics: in that it helps to divert some of our capacity for reverence away from our political leaders, who should remain instead under clear-sighted scrutiny. (Perhaps even the occasional reference to our nominal national religiousness helps also to keep things in perspective.)

What then is the difference in this function between celebrity and royal monarchy? There must be some difference if what we've theorised about the relationship between the monarchy and political reverence is true; America has celebrity too. It seems as though the value in this function of a royal monarchy is in its hybrid state between political institution and popular celebrity: such that it attracts just the right sort of reverence away from politics proper.

Nevermind the spellcheck

2007-02-22T11:08:00.000Z

Last week I heard a live satellite report given to BBC Radio 4's PM programme. I was struck my a mistake that the reporter made - it was just a simple slip - he said one thing when he must have meant to say another.

I've written in my last couple of posts about some of the issues surrounding the development of new media; I'm going to play on this theme once again this time around.

It's all very well that consumers should be looking forward to stepping up in the new media world to the status of content creator, but I wonder now if traditional broadcasters and publishers (henceforth, broadcasters) can really be looking forward to the relative step down that this represents for them. I'm not suggesting that traditional broadcasters are going to lose their status as professional organisations overnight as a result of so many oiks being capable of writing a blog; but if traditional broadcasters are going to keep up with the developments of new media, in pace, breadth, and flexibility, then they're going to have to prepare themselves for the consequences of a degree of redundancy at some level in the traditional editorial process.

The work of the consumer-turned-creator is in most cases going to be rough around the edges, and I'm not suggesting either that major broadcasters are going to want to emulate this style in order to 'fit in' to new media; even in those instances when broadcasters would want to fake not being edited, I don't think they're going to have a problem doing it. The real problem though is this: the limits of the traditional editorial process are not easily resolved with the limitlessness of new media broadcasting. When a major event happens, for example, I could comment on it in my blog, with words, pictures and sound, within a day of hearing about it on the news. While maintaining its editorial integrity, I imagine it would take the BBC current affairs television programme Panorama at least a week to compile and produce their special on the same event. Even Newsnight doesn't match the pace of the internet in its latest form ('web 2.0', the 'blogosphere'). Without making a new offering in doing so, it would be impossible for the BBC to issue considered comment on the same level as my blog.

The corollary is that it's impossible for my blog to issue considered comment on the same level as the BBC; though given the number of smart people in the world who don't work in tradtional broadcasting, but who are capable of blogging, and given the ongoing development of new media as mentioned above, I know which body of creators is soon likely to be driving the other. The answer probably would be for traditional broadcasters, as they invest in new media, to get as many of these smart people on board as possible. I'm under the impression that Guardian Unlimited is a leader in this field: they've got loads of bloggers writing for them.

Perhaps I've identified a strength of traditional broadcasters in a new media environment: they are the bastions of the old media model, editorial integrity and more. The demand for reliable information is only going to increase with the growing popularity of new media. What's more, editorial integrity aside, the fact is that not everyone wants 'new' media all the time; in fact very few people do. I was conducting some research the other day, looking at online men's magazine Monkey. The magazine has a graphical interface that mimics the paper magazine reading experience - you can drag the pages by the corner across the screen to turn them - but I found that this detail of the interface seemed only to emphasise the fact that this wasn't a real magazine. It's a problem because a paper magazine to relax with is probably what a substantial proportion of the men's mag audience wants; computers are for working on.

This example is only a technological limitation, but you get my point: there will always be a market for traditional media. I think traditional broadcasting mammoths should still be worried though if the way I'm describing their offering is beginning to sound niche rather than mainstream; it's my belief that increasingly that's what traditional media is set to become: niche.

But that means that new media, and its editorial process, is increasingly going to have to develop beyond its current niche status. I hope we'll see a honing of what are effectively instinctive production and editorial techniques. More than that, redunancies on one level in editing and production in new media will necessarily be compensated for by an expansion in the same on a higher level, in terms of what is produced, who produces it, when it is produced, and in what context (Joe Marchese described on Tuesday some of the new processes involved in managing new media). I guess maybe what I'm describing is an expansion of PR function in place of redundancies in editing, as if in new media editing is PR... but then isn't that kind of what it is already? (See my entry 'Our Innocence Lost' on artifice and engineering in new media.)

... but with great power comes great responsibility

2007-02-14T09:59:00.000Z

It was reported last month that five families at a court in Los Angeles jointly filed a negligence and fraud suit against Rupert Murdoch's News Corporation. The company owns the social networking site MySpace, which enabled paedophiles to groom and sexually assault the children of those families.

I first read about this case shortly after writing my last blog entry, and I think it provokes a discussion that follows from it: about the responsibility that new media providers must be willing to accept if they are to protect the health of new media. Empowering media consumers as broadcasters is a dangerous business. By encouraging us all to become personal broadcasters, new media providers are giving each of us the ability to devastate our own privacy in an instant. It's not just Google or News Corporation that we share our information with, so that they can show us adverts; imagine the consequences of accidentally sharing a personal document with the whole internet, instead of a small group of friends. And it's not just issues of privacy that accompany broadcasting. Media providers are also empowering individuals to commit libel and infringe ownership rights.

One immediate response to these concerns would be to say that it's down to individuals and the government to be responsible for these issues of identity and interaction; and it's true, we do have personal responsibility, and of course the government does too. But I think that responsibility for these concerns should lie most of all with media providers, because assuming this responsibility is in their own best interests. Let me explain why:

As I mentioned at the end of my last entry, moral integrity and trustworthiness are likely to become increasingly valuable as a consequence of changes in the branding environment. This somewhat superficial reason isn't the only one though for why media providers will need to be moral, trustworthy, and responsible: they will need to be these things in order for new media, for consumer content creation to work at all.

As they collect and help us to share more information, media providers are demanding more trust of consumers than has ever been asked of them before. In addtion to the information that we actively upload, media providers are in a position to collect information relating to every single discrete action we take in using the internet. When a transfer of information occurs, it's already being recorded:

where geographically in the world the consumer is; and more specifically, what internet service provider he or she is using. This is to become increasingly important when, as with Virgin's new 'quadruple-play' TV, landline, mobile phone, and internet offering, the channels of our media consumption ('old' and new) begin to merge.
When exactly the information transfer was made;
exactly what information was transferred;
and how, i.e. with exactly what media device the transfer was made.

That last category of recorded information is very sweet icing on the cake for the media industry. By using 'cookies', the data gathered about each of our information transfers is made uniquely identifiable, and so can be made continuous with the data on all our other internet activity.

We're looking in new media at the ready availability of a massive amount of information on consumption; and this information is without the bounds we've seen traditionally in media research methodologies, like those of sample size, human error, research budget, as well as others. Where online media consumption can be linked to purchase - and that's where consumption itself is not already purchase - there's a veritable cornicopia of data relating the media we consume, to how we spend our money.

My point here though is mainly to encourage trust, and to urge media providers to warrant it, rather than to warn consumers against it. There's incredible potential for insight in all this information, and I'm sure that that can be for the good of everyone involved; but, and here's the very significant rub: media providers must be responsible for and have the trust of consumers if they want us to invest our information.

Thinking now for a moment of the work I did at the marketing research agency Millward Brown, I'm not sure what all this new-found power in new media is going to mean for the study of consumer attitudes. In a world where on-demand, interactive new media is the only media, it might not be necessary for us to bother trying to research consumer attitudes at all, when we would have a near-perfect picture of what media people are exposed to over time, and the effects of that exposure on media consumption and purchase. In such a world, in the terms of consumer insight, attitudes become consumption itself.

I would probably guess also that advertising pretesting, as we know it - out of 'field' - will become a redundant practice. What would the point be of having a separate out-of-field process for pretesting a piece of advertising, when it's actual performance in field, amongst a perfectly controlled audience, can be monitored, perfectly?

However I can see it being useful to be able to apply to our ongoing study of how consumption is impacted upon in new media, that which we understand already about how in traditional media attitudes can be changed. And I don't mean to suggest either that the quantitative analysis of consumption data is ever going to replace the creative, brain-storming processes of qualitative research, or anticipating patterns in consumer behaviour before they form.

And once again, as with the future of the advertising industry, we run into a brick wall when it comes to the number of people actually 'on' the internet. All the traditional ways of examining consumer attitudes remain of paramount importance in the undeveloped world. Whatever man-power that might be freed up by efficiencies and redundancies in the new media world would probably be wisely invested in developing digital media on the ground, in the places where it hardly yet exists.

Our Innocence Lost

2007-01-31T15:15:00.000Z

You may have seen an article in Tuesday's Evening Standard about the rise to fame of Mia Rose, whose homemade music videos have made her the most-viewed person on the video-sharing web site YouTube.

It got me thinking about the effects of increasing interactivity in our media environment. We can't ignore the fact that interactive modes of media are becoming increasingly popular, so it seems worth wondering what the effects of that interactivity are on the way media works.

We can be sure that interactive media engages consumers more actively than traditional modes of media: a consumer reading and posting a comment on a blog site will certainly be engaging with the blog more actively than if he were being presented with the same information in a television programme. This leads consequently to the potential for interactive media to be comparatively much more communicative to its audience than traditional media. Interactive media is also guaranteed to be more relevant to its audience, as consumers only interact with media that's relevant to them. Interactive media then, is more engaging, communicative, and relevant, which must make it more effective.

The reasons for this additional effectiveness of the media make it a good thing in itself for consumers, but increased effectiveness is also a good thing for advertisers. Media is, of course, the vehicle for advertising; more-effective media means more-effective advertising.

Through effectiveness though is not the only way that both consumers and advertisers benefit from interactivity. Interactive channels provide consumers with the ability to create their own content. Interactivity then probably also makes media on average cheaper, both to consume and to advertise in. Now that those we have traditionally thought of as media consumers are generating content themselves - for free, at home or wherever they are - there's a lot more of it available.

The rise of interactive modes of media - and I'm thinking mainly on the internet - has made it free and easy for anyone to communicate to a global audience. This is likely to make it more important for authors to be able to identify themselves effectively (when they want to); which is the same as it becoming more important for branding to be employed effectively. Branding is going to become more significant than it already is - if that's possible.

The article about Mia Rose in the Evening Standard actually focused on accusations that Mia's YouTube campaign has been conducted secretly by a PR team. (See my last post, 'Big Bully', for more on artifice and engineering in the media industry). You might have been forgiven for imagining that an increase in the significance of consumer-created content would cause the nature of interactive media in aggregate to tend further towards being 'honest' compared to traditional media: after all, the traditional consumer loves and demands honesty, and has no hidden agenda. The accusations levelled at Mia Rose however suggest that this is not the case.

The truth is that whoever creates its content, a degree of what we might describe as deception is inherent in all media, whatever its mode, and that in fact, there is even more opportunity in free and easy, interactive, consumer-created media for this deception. The Mia Rose case illustrates the effect that the removal of the line between consumer and content creator can cause: the creator can easily pose as a humble consumer - that's the corollary to the fact that the interactive media consumer can easily also be a content creator. It's central too to the nature of most interactive media that a single person can have an infinite number of different digital identities (real or otherwise). No truth in consumer-created content is necessarily the whole truth, if even the truth at all. Every single media consumer now has the potential to be multiple content creators, and to be on a level with all other content creators. With that potential have come the agenda that are universal to all content creators: not just the desire for audience, but also that which often drives it: the desire for advertising revenue. Services such as Google's AdSense for publishers have made it very easy for any creator of online content to generate advertising revenue from it. For the interactive media consumer, innocence is a fond memory; the interactive media consumer has come of age.

And there's certainly no going back; this is not a passing fad. There is nothing like the economics of an advertising industry in which the number of advertisers potentially matches the number of consumers to sustain the rate of growth of content production. This growth will in turn sustain the advertising industry. So long as the necessary infrastructure - like online storage space and interactive media services - remains in place, the only limit here that I can think of is the number of people in the world with access to the internet.

An interesting side-effect of this evolution in the media I think will be an increase in the importance of the function of branding to lend credibility to a content creator; while at the same time, branding's capacity for this function will deteriorate, as branding becomes cheaper and easier. Those brand values - i.e. brand image attributes - that are associated with moral integrity, trustworthiness or (somewhat paradoxically) innocence will become even more valuable than at present. Once again, Google, who continue to do a lot to drive the evolution of media, springs to mind, with their slogan: 'Don't be evil'.

Mia Rose on YouTube
Blogger
MySpace
Google AdSense for publishers

Big Bully

2007-01-23T20:10:00.000Z

The Sun this week exposed what it described as the previously hidden truth about Jade Goody: that she is really an ignorant, bullying racist.

As a consequence of having been filled in, once out of the Big Brother house, on the latest of her treatment by the media, 'Jade', according to her agent John Noel, 'is completely distraught and is receiving medical attention for shock and depression'.

That's not surprising really, considering the roller coaster that life must be for her, at the whim of the media. She has been thrown from anonymity via celebrity and now towards notoriety; a tabloid darling one week, a figure of public hatred the next, it's not surprising at all if she's suffering emotional whiplash.

No doubt though, Jade must by now be a tougher cookie than most. This is hardly the first time that she has been on the receiving end of massive media harrassment. Since first appearing on Big Brother, Jade has been ridiculed as stupid and overweight; and that's on top of the more general but constant intrusive and demeaning commentary on her private life that she suffers as a personality in the tabloid eye. (And hasn't she done well despite it? - fitness video and all!)

The real ignorant, bullying racist, to use the tabloid press' own terms, is the great British public itself. We are the ones who buy the Sun and the Star each morning, and tune in by the millions to Big Brother each evening. Channel 4 has been the scapegoat for this latest media 'debate', but what is not emphasised enough is that the popular media does not so much create attitudes as it does reflect them. The questions of racism and bullying on Big Brother have been provoked by the programme's editors; obviously Big Brother's makers thought they would make for good television. And why did they think that? Not because racism or bullying is entertaining, but because the British public is as much a racist and a bully as Jade Goody is (which, truly, is not that much). The C4 executive board met yesterday to discuss recent events; they will have been asking themselves, 'did we give them a little too much reality this time?'

Julian Baggini's excellent article on Guardian Unlimited today discuses the truth about so-called 'racism' in Britain today.