vSocial's CEO describes the dynamics of "Channel Me" and how marketers can be a part of this new media climate.
History will show Google's $1.65 billion acquisition of YouTube was the inflection point when the old content-driven media model (CBS, NBC and Fox) irrevocably shifted to a new medium (MySpace, GoogleTube and Facebook) driven by deep profiles, social nets and video clips.
New media is designed for a generation of multi-taskers who consume information in "soundbites." As such, it is marked by the almost random manner that conversations spread virally across groups that share similar interests.
Whereas "old media" cast content at the center, new media is about the user, giving them control of what they digest and how they digest it. In the new media universe, organized chaos is the rule and conversations are the kingdom.
Conversations with my brand
Once upon a time, content was content, an ad was an ad and the audience was passive. No more. The lines between consumer and producer are blurring.
Would it shock you that a video clip from a TV show that has been uploaded by the show's producer (an "official" clip) gets watched one-third as frequently by visitors to an online video site like vSocial (disclosure: I am vSocial's CEO and co-founder) as the very same clip uploaded "unofficially" by an inspired fan of the show?
Why? The unofficial "producer" has taken ownership by pushing the content live and wants recognition. They tag, blog, embed and email it to friends and "like minded" quasi-friends. Recipients of the clip, in turn, work their formal and informal social networks, extending far beyond what would be achievable under the old rules.
The new model is powerful at capturing the currency of attention. How powerful? On vSocial, the most popular clip on our network (a clip from Fox's "Family Guy") has been viewed over 47 million times!
Broadcasters spend hundreds of millions of dollars advertising their shows, yet nobody watches commercials anymore. The "Family Guy" clip on vSocial wasn't an ad for the show; it wasn't even formally sanctioned by Fox. They did not spend a dime on distribution, yet the most common landing spot for viewers of the clip was Fox's MySpace.
Some say that online video is simply doing for digital video what Napster did for digital music; namely, providing a network where consumers steal content. My biases notwithstanding, this never rang true.
Music's currency is a song and many albums have just one or two songs that listeners aspire to own. Online video is all about the clip. People don't want to sit in front of a computer (or iPod) to watch a show. But millions will watch a two-minute clip and if they like it, they will tune in to the show.
If you decide to embrace the new model and allow derivative creations like clips and mashups to flourish, what are the new rules of engagement?
For example, CBS gained viewers after uploading clips to YouTube. Getting content as far and wide as possible is good, and the incremental costs of letting content run wild is de minimis. But why cede this real estate to a Google property (YouTube) when via a branded player, the conversation can become bi-directional with links in the clip leading back to specific CBS web content, much like bread crumbs leading a viewer home?
This approach works for the local band's home spun video no differently than it does for a national broadcaster. A player redirects viewers to the band's website, their tour schedule and a "purchase CD" link. A motivated Detroit band, Broadzilla, recently generated 850K plays of their video via this approach, with no distribution deal or advertising budget.
In new media, big brands and little brands co-exist under the same rules. This credo makes eBay and Google thrive. A Fortune 100 company uses Google AdWords the same way a niche salad dressing maker does. HP auctions off excess inventory on eBay using the same platform as someone selling their old TiVo.
Similarly, while everyone is under the same tent, only those with common interests connect. If I like Japanese anime, a virtual path is algorithmically built linking anime lovers by virtue of their viewing, tagging, commenting, rating/reviewing behaviors and what they add to favorites. And people who don't like anime never view this content or participate in these conversations.
Extend this to golf lovers, dog lovers and one envisions a virtual tent big enough to accommodate everyone, all demographics and interests-- a highest common denominator universe versus the LCD nature of traditional media.
Channel Me: A new value chain emerges
"Channel Me" is about users having tools to easily capture, organize, customize and share content. It's about deep profiling and filtering recognition systems that highlight what's new, popular, recently viewed and talked about.
More often than not, such content will be ad-supported by third-party advertisers seeking affiliation with contextually targeted content. Content owners will reward the most virally-connected users for spreading the word. The economics are in the formative stage but every week my company sees another brand/agency committing dollars to word-of-mouth campaigns.
It is this combination of programmed content, personalization and integration within a social network that personifies Channel Me. Low production and distribution costs mean channels will emerge for every topic. This is not public access on cable either, as today's emerging networks and communities could someday give Comcast a run for its money.
Looking backwards, looking forward
The success of MySpace, Facebook and YouTube is the antithesis of a centrally planned broadcast model, instead being the offspring of an environment where short, informal conversations spark easily and instantaneously, and the user is in control.
That is not to say new media will swallow the old. It won't, but its disruptive wake is real, as evidenced by the struggles of the music and newspaper industries. Ride this wave by leaving breadcrumbs for the right audience, and your customers will find their way to you and encourage your audience to talk about you.
Towards this end, Yahoo! received well-deserved press for its Brand Universe initiative, which integrates multiple Yahoo services around a single brand-centered topic. Companies like my own are developing platforms to enable niche content builders and media operators to systematically launch their own branded centered social nets.
The evolution of the web to a video-powered social network is as profound as the evolution of broadcast media from radio to television, and destined to be no less exciting.
Mark Sigal is the co-founder and CEO of online video service provider, vSocial, Inc. Read full bio.