Business Quests in the Information Age

Blog Ad Network by Six Apart helps monetization of smaller blogs

Six Apart is one of the few companies of the so called web 2.0 wave whose focus on sustainable business models is a major strength. Using their position as a blogging platform to structure and manage an ad network is really a no-brainer from a business standpoint, while it is also in keeping with Six Apart's consistent policy of offering easy-to-use solutions to its customers. They are uniquely positioned to generate substantial business value from this initiative. I am very curious about their pricing mechanism and about the degree of visibility they will allow into their profit margins from this activity. And perhaps even more than those aspects of the scheme, I will be interested to understand their targeting philosophy (serving the relevant ads to each micro-audience) because that's one of the big battles of tomorrow's advertising.

clipped from www.marketingpilgrim.com Six Apart Launches Blog Ad Network, Blog Services clipped from www.marketingpilgrim.com Blog software company Six Apart acquired creative agency Apperceptive, a company that built blogs for sites such as The Washington Post, The Huffington Post, BoingBoing, and iVillage. Now they’re launching an advertising network for blogs. They are also venturing into design, programming, and blog marketing services. As an ad network, Six Apart is competing with Federated Media Publishing, Glam, Blogads, and others. Here’s how it will work - they will get advertisers, bloggers put the ads up, and the two share revenue (not sure what the payouts are like, but I believe it’s typical to get 20-30%). Six Apart is working with Adify to provide back end support so bloggers can see their payouts and manage their account. they are targeting their services to the little guy The ad network is currently in invitation-only beta and it’s just for bloggers who use Six Apart’s Vox, TypePad, or LiveJournal.

Fret no more about Google

The decrease in paid clicks on Google's online advertising network has been one of the worrying news of the first quarter for modern day advertisers. The Economist has done a good little piece of analysis showing why the decrease may only be the result of Google's own aspiration for more relevance and better performance of ads. And I think it shows pretty well why Google is here to stay and very far from being already "over the hill" as some put it. It is perhaps the most telling testimony of the company's ambition to build a sustainable position in the elusive field of online advertising and beyond that narrow perspective an indication of the stringent demands the company has on itself.

So emails may be flying around showing how great a working environment Google is, but nobody should infer it's a corporate version of Club Med. And judging from their ambitious cooperation with SalesForce , these guys are going for a cut of every significant business transaction they facilitate. That is some business quest!

clipped from www.economist.com The case of the missing clicks What does it mean when people click on Google's ads less often? The scare started when comScore, a research firm, reported in late February that Google's “paid clicks” had decreased by 7% during January, and were flat compared with the same month a year earlier. the ratio of paid clicks to searches dropped even faster than the number of paid clicks: it was down by 16% in the month of January. eMarketer, another research firm, projects that online advertising in America will grow by 23% this year, economic troubles notwithstanding, because the measurability of the medium is too compelling for marketers to ignore. the likeliest explanation is instead that Google itself is to blame—by, paradoxically, increasing the quality of its ads this is what drove Google's revenue last year: it grew by 56% on the back of a 21% increase in revenue per paid click.

Lego Mindstorms at Ad:Tech

Just attended a splendid presentation of the way Lego has been actively seeking to and succeeding in involving passionate users in the life of the Mindstorms product line. Lego's people noticed that Mindstorms was generating a lot of passionate contributions and involvement by the community of users, many of whom were absolutely not kids but male adults. The product seems to have been outrageously successful in the Silicon Valley, where the local tech enthusiasts seem to be the typical customers. The product was being hacked and transformed in all sorts of ways... So Lego's people decided to really engage in a very intense interaction with their customers and to let them influence the life of the product to a very large degree. They set a few very simple rules to manage the community of carefully screened engaged users: respect, positive contribution and giving Lego a veto right on how the product would evolve... Today, it's one of the best known examples of how powerful a genuine engagement with customers can be to drive buzz, word of mouth and basically to make it possible for a lovemark to emerge. There's even the case of famous author Chris Anderson who went on to build a drone using a Mindstorms NXT control module...
Here's a nice little video about Mindstorms:

Upgrading my "software"

One of the things that I most love about being a freelance professional is the freedom to choose how I go about upgrading my skills, the software that I have installed between my ears if you will. In fact, following trainings that can help me better coach and help my customers is a priority. That's one criterion for choosing and that's what led me to participate to a two-day training session organized by Xebia with Jeff Sutherland (who I find very impressive with his great combination of expertise, experience and common sense - highly recommended!) on scrum a method that he's helped invent. Scrum does seem to be the kind of methodology that truly binds agile practices of software development teams to agile product management, i.e.exactly what one needs to help customers in fast paced and high-growth business contexts. For more about Scrum this is a good link. No nonsense approach to projects, smart implementation of lessons from complex adaptive systems and action orientation are the characteristics I most appreciate in the approach. I will definitely be looking for projects and environments where to apply this stuff...

Full speed ahead for Linked In

Linked In is evolving big time with the integration of social networking functionality of a new sort and with the extension of its services to cover company profiles, something I consider awesome. A few months back I wrote a piece stating why I did not believe in Facebook for business and how a combination between carefully chosen Facebook-like functionality and Linked In functionality would deliver major value. Now more than ever, Linked In is becoming a real custodian of professional identity, pretty much like Google will increasingly be the authority to ascertain the identity of individuals (in fact they already act as a trusted third party for customer details verification in e-commerce transactions).
Anyway, here's a nice little video of the product manager doing a demo of the new feature, which will help propel Linked In to a position its look-alike competitors will have hard time catching up with. And by the way, this is the sort of stuff I would love to see more product managers do for their products.

Nope, the world ain't flat Mr Friedman

Some good material presented at Media'08 in Australia. Should it come as a surprise that the concept of a flat world is being challenged from "down under"? This presentation is quite interesting in that it challenges a few stereotypes and generally accepted truths and thus puts in perspective a number of success stories that capture so much of our attention these days. No I am not rambling about Facebook and its ridiculous valuation... at least not too much. Enjoy this good stuff!

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Wisdom of crowds or herd mentality?

"Wisdom of crowds" is one of those fads especially online and I think there's a myth to dispel. Opinions, concepts, software, decisions and content may emerge and get build as a result of adding-up the individual inputs of many people, but that does not mean that where one identifies group phenomena there's necessarily intelligence, let alone wisdom. Since I think words are important, let me get back to the basics of what the word "wisdom" actually means, referring to a definition quoted from dictionary.com:

1.	the quality or state of being wise; knowledge of what is true or right coupled with just judgment as to action; sagacity, discernment, or insight.

2.	scholarly knowledge or learning: the wisdom of the schools.

3.	wise sayings or teachings; precepts.

4.	a wise act or saying.

While there are cases in which the collective intelligence of many participants to a process of creation or evaluation may yield positive results, I believe there are conditions for that phenomenon of collective emergent intelligence to actually take place and I doubt it should be called "wisdom". And I doubt it's relevant to characterize any group behavior as "wisdom of crowds" as some people tend to do. Since there are a couple of business ideas out there that rely on the assumption that collective intelligence can be exploited by merely putting together a community of users, I think there are quite a few entrepreneurs who should think this through. Sometimes crowds are just dumb and there's nothing very wise about herd mentality as shown in this excellent story of Gaston Lagaffe (click to enlarge).

Carbon emissions: facts to make a difference

Nowadays a day seldom goes by without some piece of news regarding the sorry state and dismal prospects of the Earth's environment. These are the days of inconvenient truths. Opinions are numerous, conceptual ideas abound,  more or less scientific and rigorous conclusions widely distributed and each person responds in their own way. Some will feel anxious, others don't know or pretend not to know (so they can drive an over-sized car with an engine that makes a noise that is music to their ears), others still feel a century is too long a time to worry and a few do what they can to help.
The point however is that we all seem to be like drivers or airplane pilots deprived of instruments, flying or driving blindly in the worrying knowledge that the wall we will hit is getting dangerously close. That's the key issue: we lack data about the impact of our daily micro-decisions on the environment even though there are all sorts of calculators of environmental impact out there. What we do not have is a means to measure what is going on as it's happening, which is really a pity in a world so connected. That's precisely one of the challenges OpenSpime, the self proclaimed "infrastructure company for an open internet of things", seems to be addressing with a pretty cool infrastructure that combines sensors, software, the Internet and mashups to deliver actual maps of carbon dioxide emissions. A good friend of mine is their CTO and I am impressed with what these guys are presenting in this video:

Great User Generated Content in the US Primaries

Here's a piece I think is a shining example of user generated content and a strong indication that open online platforms give real power and influence to the people. Now sure whether that validates Gladwell's tipping point, but it does show that the people can wield some influence. Now the question is whether this influence will be stronger than that of insiders of a system, in this case the US political establishment. Something interesting to watch for marketeers and communication pros.

What makes a commercial powerful and lasting?

Since I am in Canada these days and since I am most interested in the momentous changes that have been going on in the field of marketing for the past couple of years, I 'd like to comment a beautiful advertising campaign. It's the Molson campaign that was released many years ago and which plays very well on the existence of stereotypes commonly held by Americans about (did I say a-boot?) Canadians. Quite clearly this is an ad that captures human attention mainly because it's fun and light. See for yourself:

But there are other aspects to it that are interesting amongst which is the fact that it lends itself to sequels and to further exploitation of the dominants stereotypes. Here's a second film that illustrates this:

On the same theme, a couple of friends told me about (a-boot?) somebody who produced a derivative version of the Molson ad that makes huge fun of the cultural divide between French speaking and English speaking Canadians.

Perhaps a good way to bring sterile debates to a fairer proportion than politicians would like to and perhaps a good inspiration for somebody to do something analogous in Belgium because the people of that country deserve a much better political leadership IMHO.

So, what makes a commercial powerful (i.e. capable of seizing human attention in a world of content overload)? What makes it last and get a second life in a radically transformed media environment? I wonder whether there are other ads from past years that could be exploited by modern day communication agencies in the interactive space as shaped by the Internet to deliver high impact campaigns...