Christopher S. Penn – Marketing AI Keynote Speaker

Tag: New media

Enduring darkness

I’ve been watching our economy since starting the Financial Aid Podcast 3 1/2 years ago. In that time, I’ve seen the first cracks form in it, spreading and ultimately bringing us to where we are today. A few folks have used the labels visionary or seer, which is most kind of them. Here’s what I see ahead.

The bad news? This is the bottom of the third in a nine inning game. There’s a lot of darkness ahead, a lot of trouble. There are no easy answers, no quick fixes that will work. Momentum has picked up so fast that on the financial markets, news that would have been hailed as revolutionary a year ago is shrugged off in less than an hour now.

What we face in the months and years ahead is nearly unprecedented in terms of economic turmoil. Our society at large will be different when we emerge on the other side. Some won’t make it.

The goods news? You’re not alone, as my friends remind me often. You as a participant in social media, in new media, have a vast network of friends and acquaintances. Now more than ever, you need them and they need you. Think of it as a guild of sorts, your particular band of rogues, working together, helping each other out, doing what must be done to keep things moving forward. Know what your superhero powers are and what your Kryptonite is, and band together with like-minded folks who have complementary powers.

Go to conferences. Go to events, go to meetups, get out of your office and away from the desk and talk to real people. You say you’re not in customer service? Wrong. You’re in customer service more than ever, especially if your title has a capital C in it. You may find that you need your customers as more than a revenue stream or a commodity – you may find you need your customers as friends and allies.

There are unquestionably dark times ahead, and there will be points when it seems as if there’s no light.

The light that you need to get out has to come from inside you, your heart, spirit, will, and drive.

The light that you need will grow more powerful when others bring theirs, too.

Grab your light and set foot on the path.

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October 10, 2008
Shorting a stock, 2.0 style

Early this morning, someone filed a CNN iReport (citizen generated content) saying that Apple (ticker: AAPL) CEO Steve Jobs had a massive heart attack.

Apple’s stock immediately dropped 5%.

Apple PR responded to mainstream media inquiries denying the rumor, that Jobs was perfectly fine. (hat tip to the Unofficial Apple Weblog for breaking it on Twitter first)

If you were going to short a stock, spreading a false rumor about the CEO’s health would be a great way to cause a panic, long enough to make some serious money. The brilliance of this tactic is that the rumor was done using CNN’s brand. Early “viral” messages said the report came from CNN, not CNN iReport. CNN, in other words, had their brand and credibility hijacked.

What would you do if you were Apple? What should you do?

Apple: get on Twitter. Get in the blogosphere and the new media world. You need to have a point person in the fast moving channels of citizen news to immediately knock down crap like this.

Then have your legal department file a complaint with the SEC and ask for a formal investigation.

Apple shareholders: if you lost money on Apple due to the rumor, is CNN responsible? Is CNN liable? Are they a media outlet or a content distributor. If they fall under common carrier, then who is liable besides the original rumor spreader – and are the shorts, if there were any, profiting with no liability?

Inquiring minds want to know.

Bottom line: if your company is not participating in new media, especially in news channels, you’re going to get run over. Get going.

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October 3, 2008
How World of Warcraft can make you a better marketer

I’ve been playing World of Warcraft (WoW) for fun the past couple of weeks or so. It was a fun game in the beginning, but now it’s a useful game, at least in the sense of honing two vitally important skills, arbitrage and information asymmetry. (two skills, I might add, come in handy in today’s economy)

To the right is a screen clip of WarCraft as it appears with a few pricing plugins installed. By itself, the doesn’t look at all like this, only with some plugins. (Auctioneer, if you’re a WoW gamer) Take a look at what’s in there.

Pricing
Median buyout price
Buyout prices at the extremes
3, 7, and 14 day moving averages of prices
Item availability from vendors and pricing
Resale valuation and estimated ROI

Bear in mind, the average player of WoW doesn’t install this add-on software, which means they don’t have access to this information.

What does this have to do with marketing? There are two concepts at work here.

Arbitrage is unequal pricing for equal things. In this example, I can tell what items are good deals and what items aren’t, what items are a bargain, what items are overpriced. Arbitrage extends to marketing and new media as well – concepts that work in proven systems can be adapted to new media, and the result is information arbitrage. I can take a concept like a proven sales letter template and adapt it for a blog.

Information asymmetry is even more important in this case. I have access to information that the average WoW player does not. This allows me to be more effective as a WoW gamer, because I can earn rapid profits from better information, especially competing against players with less information or lower quality information. Marketers in new media have an information asymmetry advantage that marketers outside of new media don’t enjoy. Marketers in new media have access to the Twitter stream, to blogs, RSS, podcasts, and so much more. If you can know what your target market is thinking and saying about your product, service, or industry, you have a massive advantage over marketers who lack that information and either have to compete by spending more or can’t compete as well.

Arbitrage and information asymmetry – all from a fun game.

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September 29, 2008
Social Media Dashboard – Bloomberg for Social Media

Social Media Dashboard – Bloomberg for Social Media

This morning started off thinking about Bloomberg’s wonderful but hideously expensive terminal, and how it gives you insight and also a dashboard to instantly know what’s going on in the markets. I thought, wouldn’t it be interesting to have a Bloomberg for social media? Sure enough, a platform exists to manage all your social media in one place, and that’s iGoogle.

Click on the photo for a larger version.

Take a look at what we’ve got here.

Facebook, GMail, and Google Finance on the left, because if I’m doing this for a purpose, for, say, the Student Loan Network, it’s more than just conversation, it’s also understanding what’s happening in the bigger picture. Thus we see a public portfolio of companies in the student loan sector and broader market stuff. Not only does this keep on top of things for my client (the company I work for) but it also gives me the ability to be current when I participate in social networks.

In the middle, a mashup of Yahoo Pipes culling from Twitter Search on specific topics and keywords relevant to the industry. This can be anything at all, but for this, it’s all financial aid stuff, so I can stay on the pulse of financial aid as reported by customers and consumers. Below that, Feedburner for the podcast and customized Compete analytics to monitor what’s happening on my sites and my competitors’ sites.

On the right, Twitter replies to see if anyone needs my attention, and Digg to see what’s buzzy in the world. Obviously, swap this out for Reddit, Stumbleupon, Yahoo Buzz, or whatever your buzz-watcher of choice is.

This, incidentally, is social media with a purpose, highly focused for one specific task – being a financial aid expert in social media. It’s most assuredly not a fishbowl setup where I watch social media for social media’s sake.

Try it for your own vertical and niche, and see if it works for you!

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September 17, 2008
The market crashes, turns to ashes

“The market crashes, turns to ashes that you’re dancing on while some fat lady cues up for a song.” – Matthew Ebel, Better Off Dead

Well, folks, the great unraveling is picking up pace, with more banks failing, Fannie Mae and Freddie Mac taking up hundreds of billions of taxpayer dollars in a bailout, and companies like Lehman Brothers essentially saying “Everything for sale, cheap! We need cash fast!”

What does this mean for you, the new media professional, the marketing professional?

It means that flash cash for new media is dwindling fast. Companies can’t afford Bubble 2.0 any more.

You’d better have a revenue stream that isn’t dependent on just advertising – MarketingVox recently cited sharp declines in expenditures.

You’d better have a revenue stream that isn’t dependent on discretionary income – that’s going away real fast.

You’d better have a revenue stream that isn’t dependent on corporate largesse – budgets simply aren’t there.

So what should you be looking for?

Look for pay-for-performance revenue streams like affiliate marketing that pay a cut of the sale. Take a look at Shareasale, for example. (Full disclosure: PAID link that supports the Financial Aid Podcast.) As long as you make affiliate publishers money, you make money.

Make premium subscriptions for irreplaceable content. Your content has got to be so valuable, so top-notch, that it’s no longer discretionary spending, but mandatory spending.

Above all else, if you’re not building your database, you’re dead meat.

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September 10, 2008
How To Monetize Your Social Media Outlet

How To Monetize Your Social Media Outlet

In a variation of a Financial Aid Podcast blog post this morning, here’s a brief economics 101 explanation of how you can monetize your blog, podcast, Twitter lifestream, or other social media outlet.

Economics 101

Supply and demand are inversely related. When demand exceeds supply, you have to pay others to take your stuff. When supply exceeds demand, other people pay you for your stuff. Value comes from demand. Here’s a simple monetization chart:

If your social media outlet is in high demand, you can get paid for it. If your social media outlet is not in high demand, you have to pay others to take your stuff. If supply and demand are in equilibrium, you’re at totally free.

This is why advertising is the main method of monetization for most social media. Your social media outlet in and of itself has very little value, sorry to say. What has value is your audience. They’re the commodity that you have to sell, and you do sell them, whether or not you want to believe you do. You can sell the actual audience in the form of renting or selling an email list, or more likely, you sell access to your audience in the form of endorsement, sponsorship, or ads. Your audience is the value to the advertiser, and in turn, your content is the value for your audience.

See the entry on the chart where it says your blog, podcast, and twitter stream? See how it’s actually in the you pay others section? It’s true. Statistically, you pay others for your content. You may say that you’re blogging for free or giving away your content, but the reality is that you’re paying others, in hosting fees, bandwidth, in domain name purchases, in your time and energy to create and market your content.

You’re paying others.

Social Media Metrics That Matter

How do you know when you’ve become a true social media success?

When everyone pays you.

Advertisers pay for access to your audience. Your audience pays for access to your content – perhaps in cash, perhaps in inbound links, perhaps in word of mouth marketing on your behalf. Major media outlets pay in time and energy to cover what you’re talking about.

Most important of all, checks arrive in the mail or by direct deposit that are sufficiently large enough for you to meet your expenses and then some. At the end of the day, whether or not you can afford to eat and put a roof over your head is the only metric that matters.

How To Monetize

How do you get there? Back to the chart.

You’re fighting an uphill battle if you think you can reduce overall supply, so you have to be a specialist, an expert in something that is in short supply. Ideally, it should be something in short supply but high demand – like insider stock tips, or financial aid information.

As I’ve said in the past, I’m not a podcaster. I’m a financial aid expert who has a podcast.

So let’s assume you’ve got basic supply solved – you’ve found a niche, a place where there’s market demand for your supply. Then it’s up to you to market your content. Marketing, as I’ve said in the past, is about sharing ideas, which is a kind and gentle way of saying marketing is creating demand for your ideas.

Marketing is the creating of demand for your supply.

The more you effectively market, the more demand there will be for your content. That in turn will drive audience growth, which you can monetize directly (audience pays) or indirectly (advertisers pay), or both.

As my friend Whitney Hoffman says, you can’t outrun Adam Smith and the laws of economics. If you’re currently being paid for social media, enjoy that you are, and realize that if your monetization model doesn’t conform to the basic laws of supply and demand, your model is not sustainable and sooner or later, the money will stop.

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September 2, 2008
Why PodCamp Works – Integrated Verticals

Imagine for a moment that your industry, that your specialty, is a single post, a single beam. It represents your vertical, everything you’re good at, and also everything that’s wrong with your industry’s growth. It’s fishbowl. It’s vertical. It’s a silo, an echo chamber in which no new ideas flow in or out.

You keep struggling to find new ideas, new innovations. Event conferences in your industry are the same old, same old, with vendors marketing the same solutions to yesterday’s problems.

Now imagine you found a way to tie together your vertical with others.

Imagine you found a way to bridge the gap between your vertical, your silo, your fishbowl, and not just with one other silo, but with a ton of silos. Imagine a series of fishbowls connected, so many that you effectively have an ocean to swim in. Imagine you found the commonalities among verticals that were strengths, and that working with others in completely unrelated fields helped mitigate your individual weaknesses.

This is the mission of PodCamp. Bring together everyone from different worlds who wants to learn, share, and grow your new media skills. Bridge the gap between pools of ideas so that the best ideas are accessible to everyone, and the power of friends working together can overcome the obstacles that by yourself stood in your way.

Bring together the verticals and see what you can achieve.

See you at PodCamp.

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August 27, 2008
Media is not marketing

Media is not marketing

One of the greatest mistakes folks in media – old and new – make is to mistake media for marketing, to mistake product for promotion.

Media is not marketing.

Media is the product.

Marketing and promotion are entirely separate from media, the product.

Consider: if media were marketing, radio and television stations would never need to advertise. Newspaper circulation would reach 100% of the population and the only battle would be for existing market share. There would be no such thing as direct mail or email marketing.

Media is the product. Media is the commodity. Marketing is what gets media into the hands of people who want it. Substitute media for anything else – screwdrivers, CDs, cheese, mortgages, orange juice, hybrid cars, and the lesson becomes obvious. Build it and they will come is long, long gone. Just because you make it doesn’t mean anyone wants it.

This is a lesson that new media especially still needs to learn.

Just because you make your blog, podcast, or video doesn’t mean anyone else is going to use it.

Just because you Twitter, Pownce, Jaiku, Facebook, or MySpace doesn’t mean anyone is paying attention.

Your new media efforts – your new media output – is the product, not the promotion.

If you want to achieve any level of success, you must master promotion as well as production.

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August 19, 2008
The Death of America's Favorite Brands

The Death of Brands

Something is killing off brands in America.

Perkins.
Uno’s.
Marie Calendar’s.
Fresh Mex.
Bennigan’s.
Steak and Ale.

Who killed these brands?

Private equity. Over the past decade, private equity funds have bought up popular brands and essentially stripped them of assets by issuing debt, borrowing heavily against them, then keeping the proceeds.

Imagine dating someone, maxing out all their credit cards, keeping the cash or goods, and then dumping them.

That’s the corporate equivalent of what’s happening to a lot of brands that we know and love in America. As the bills for the debt come due, the brands and their associated companies go under.

The lesson for new media folks and social media folks is this – be VERY careful who you work with, who you allow to leverage your personal and media brand. As the economy trends ever downward, the need for our community to police itself grows ever greater. Rough times bring out rough characters. Just as there are large corporate raiders who strip companies and leave the husks of their brands on the side of the road to rot, there are equally predatory companies and individuals in every space. Do your due diligence, know what you’re getting into, read and understand EVERYTHING before you sign, and watch your back and the backs of your friends.

Watch your back.

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August 13, 2008
Rich Meals for Poor Times

The challenge is on. If you want to MAKE something useful as part of a new media experiment, join Rich Meals for Poor Times, a project we’re doing as part of the practical application part of PodCamp Philly. Contribute recipes, ideas, resources, etc. and let’s see if we can’t achieve some amazing results!

July 27, 2008

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