Author: Mathew Ingram

  • RapGenius may not have found the future of news, but it has about as much chance as anyone else

    You might have heard about the website RapGenius when it raised $15 million from Marc Andreessen’s venture firm and thought to yourself that this was a strange investment for the former Netscape founder: a site that allows music fans to annotate rap lyrics. And when the founders announced their intention to launch something called NewsGenius as a way of annotating the news, that probably sounded just as bizarre — especially since the three co-founders enjoy indulging in somewhat sophomoric antics more common to the world of rap.

    With that kind of backdrop, seeing either the founders or their service as playing even a small role in the future of news may seem like a deranged Silicon Valley fantasy, but there is something interesting in what RapGenius is trying to do — and not just because Andreessen Horowitz invested so much money in it. And it’s also worth noting that at this point in the evolution of media, no idea is too bizarre or outlandish to be dismissed out of hand.

    Crowdsourcing through annotation

    The idea that crowdsourced annotation of some kind could be part of how news-gathering evolves isn’t entirely crazy. Felix Salmon of Reuters wrote a post recently about RapGenius in which he wondered whether annotation could take the place of comments, a format that is becoming less and less useful all the time. And other services are also experimenting with annotation in interesting ways — including former Twitter CEO Evan Williams’ Medium, which launched a similar feature that allows writers to collaborate with readers.

    It’s easy to see how this could turn into a disaster, of course: just take the usual ad hominem attacks and trollish behavior that occurs in the comments on YouTube videos and multiply by the number of news articles. The Reddit thread where users tried to identify the Boston bombers seems to have soured many journalists on that site as a vehicle for crowdsourced journalism of any kind (although I have tried to argue that this is unfair and short-sighted).

    Rapgenius

    Obviously, anyone experimenting with this approach would have to find a way of moderating these kinds of contributions — either via human editors, or through a reputation system like the one RapGenius uses, which is similar to the way communities such as Slashdot work. And this approach can clearly produce value: Wikipedia seemed like a bizarre idea to begin with too, and yet it has produced better-quality content than teams of experts who were paid for their work.

    I will confess that when I first saw examples of RapGenius annotation, such as the posts that Marc Andreessen has contributed to or the letter to shareholders that Groupon founder Andrew Mason wrote, I thought it was a neat gimmick but nothing worth spending much time on. There have been other attempts at adding annotation layers to the web (including Andreessen’s own attempts at Netscape), and all of them have failed miserably. And of course it’s entirely possible that RapGenius will fail as well — in fact, it’s more likely than not.

    New things often seem ridiculous

    new Twitter logo

    But the more I thought about it, the more I thought it might be worth exploring this idea, instead of writing it off as ridiculous. And part of what influenced me was a reminder from Dustin Curtis of how many new things seem to be underwhelming — or outright crazy — and yet go on to become substantial and interesting, and valuable. Certainly Twitter falls into that category for me: I thought it was an inconsequential amusement, and yet it has done more to change the world of journalism than any single invention since the telephone.

    As venture investor Chris Dixon (who is now a partner at Andreessen Horowitz) has said, channelling disruption expert Clay Christensen, the next big thing always starts out looking like a toy.

    What would happen if the New York Times or Washington Post implemented something like RapGenius, and allowed annotations on top of the text? They might start with approved commenters or loyal readers, or those with some expertise in the topic, rather than encouraging a free-for-all. But the principle at work is the same as that driving any pursuit of “networked” or “open” journalism: namely, the idea that there are people out there who know more than you do.

    How we allow that to occur is the only real question, not whether it will occur — because it is happening, whether journalists like it or not. Is RapGenius one way of doing that, or is it a sideshow that will ultimately prove to be worthless? We have no way of knowing until we try it.

    Post and thumbnail photos courtesy of Shutterstock / noporn

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  • Newspapers need to stop lying to themselves — and to advertisers — about their circulation

    There has been much hue and cry about the New York Times passing USA Today in circulation to become the second-largest newspaper in the United States, thanks in part to a boost from the NYT’s digital susbcription plan, which reportedly boosted circulation to almost 2 million daily readers. These numbers are notoriously dodgy, however — and if anything, they have gotten worse instead of better with the arrival of online measurement and new digital devices.

    The real bottom line is that until newspapers start coming clean about their readership — both to themselves and to their advertisers — they are going to continue to miss the forest for the trees.

    The latest circulation gains for the NYT and others came courtesy of the Alliance for Audited Media (formerly known as the Audit Bureau of Circulations), an industry group composed of advertising agencies and publishers. The group notes that the numbers are not really comparable to the previous year’s results for a number of reasons, including the fact that some newspapers have launched new subscription formats, stopped printing every day and so on.

    Counting readers multiple times

    As Edmund Lee at Bloomberg points out, the AAM survey — which is somewhat ironically locked behind a paywall — also allows publishers to count their readers multiple times, according to rules adopted recently by the group. In other words, newspapers can count someone who reads the newspaper in print, on the web and on their Kindle as three separate readers. But doesn’t this inflate their readership numbers unreasonably? It sure does. The bottom line is that no one really knows what the “real” readership numbers are for newspapers.

    Some argue this has always been the case with newspapers, which is true: publishers have routinely engaged in all kinds of shady tricks to boost their circulation — including special discounts for bulk purchases by hotels and airlines and other giveaways, and even dumping large quantities into ravines or pulping them after printing. On top of that, many papers have inflated their readership numbers for years by claiming that each copy gets read by as many as five people, an estimate that borders on the ridiculous.

    Newspapers need to come clean

    This defence boils down to: “Newspapers have always done this, and no one believes these numbers anyway, so what difference does it make?” A pretty weak defence, you might argue — and you would be right.

    The other line of defence is that online measurement is also chaotic and confusing at best, and that since websites can’t even agree on whose numbers are correct, why should newspapers be any different? It’s true that measurement of online traffic is murky, with providers like comScore often giving wildly inaccurate estimates when compared with a site’s internal numbers. But this is a little like saying newspapers don’t have to tell the truth because no one else does either.

    If newspapers are competing with online publishers and digital-native content companies for both readers and advertising, which they clearly are, then they have to be better than their competition — being just as inaccurate is hardly helping their cause. And they should be spending a lot more time on trying to measure real engagement (repeat visits, time spent, etc.) than on simplistic and flawed vanity metrics like raw circulation numbers. That is a mug’s game.

    Post and thumbnail photos courtesy of Shutterstock / Donskarpo

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  • What I learned at paidContent Live: No one has all the answers on the future of media, and that’s good

    When we started to put together the paidContent Live conference, which we held in New York last week, one of the driving forces behind our selection of speakers was to find those who are doing interesting things — either in new or traditional media — so that we could try and figure out what the future of media is going to look like. As I said during my opening remarks, we may not have all (or any) of the answers, but we do have plenty of interesting questions, and that is a start.

    Among those questions are the following: Are people going to pay directly for content? Is native advertising going to subsidize media? Does sponsored content raise ethical issues for media companies? Are individual creators going to succeed by connecting directly with their audiences or by striking deals with existing media entities? And as far as I can tell, the answer to all of these questions is the same: Yes. And no. That may not seem very helpful, but I think it is.

    You have to try everything

    At one point during the panel on monetization — which also included Richard Tofel from ProPublica, Raju Narisetti from News Corp. and Bob Bowman from Major League Baseball — Atlantic Media president Justin Smith said that his organization didn’t really have a single answer to the question of how to monetize content, because it was more or less trying everything it possibly could (which is one of the reasons why I have said Atlantic is one of the media companies worth watching).

    paidContent Live 2013 Richard Tofel ProPublica Justin Smith Atlantic Raju Narisetti News Corp Bob Bowman MLB Advanced Media

    (L to R:) Richard Tofel, President, ProPublica; Justin Smith, President, Atlantic; Raju Narisetti,SVP and Deputy Head of Strategy, News Corp; Bob Bowman President and CEO, MLB Advanced Media paidContent Live 2013 Albert Chau / itsmebert.com

    For the Atlantic, that means experimenting with sponsored content (despite its potential pitfalls, which were highlighted during the Scientology incident) as well as doing live events, and introducing a premium offering — which Smith wouldn’t provide much detail about but is supposedly coming soon. As he put it:

    “To say that the ad model is going to win over the pay model is foolish. I think the solution will be multiple revenue streams, it will be how experimental, how creative you are in seeking out those revenue streams… we must try everything. And we must not believe that one thing is going to work over the other until we actually experience it and see it over a period of time.”

    The future isn’t going to be one model

    Even just on that panel, we had almost every model represented, with ProPublica — which is built on a donation model, one that Dick Tofel believes will be replicated in dozens of states and cities, in the same way most metropolitan areas have symphonies or ballet troupes — and the Atlantic, and then News Corp. with its variety of hard and soft paywalls, and MLB with its app-based and content-focused strategy. Bowman said everyone should have some form of pay model, because why not give your hardcore fans a way to pay you for what they value?

    paidContent Live 2013 Andrew Sullivan The Dish Andrew Ross Sorkin NYT Maria Popova Brain Pickings Tim Ferriss The 4-Hour Workweek

    (L to R:) Andrew Sullivan, Editor, The Dish; Andrew Ross Sorkin, Columnist, NYT; Maria Popova, Writer, Brain Pickings; Tim Ferriss, Author, The 4-Hour Workweek paidContent Live 2013 Albert Chau / itsmebert.com

    The “blogging superstar” panel also had a variety of models, none of which was obviously better than the other. Maria Popova of Brain Pickings said that she didn’t even think of herself as a business — she wrote “for an audience of one” and was happy to get whatever donations she could get. Andrew Sullivan has famously bet his future on a direct-to-reader model, but he also said he isn’t opposed to advertising either (although he is adamantly opposed to native advertising). And Andrew Ross Sorkin says he is happy to continue building a personal empire of sorts within the New York Times.

    Maybe that in itself is enough of a valuable insight, at least for now: that the future of media isn’t going to be one thing, or even a couple of obvious things — there is no one-size-fits-all solution (if there ever was) and waiting around for one to appear is a mug’s game. At least for the foreseeable future, the landscape of digital media is going to be a form of loosely organized chaos, with everyone trying whatever they can. As Clay Shirky said about newspapers two years ago, this chaotic environment is actually beneficial, because we need to try everything in order to figure out what works.

    Note: You can find streaming videos of each of the major sessions at paidContent Live in this post, and links to transcripts of those sessions in this post, as well as a roundup of our live-blogging of the event.

    Post and thumbnail photos courtesy of Flickr / Mark Strozier and Albert Chau

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    • Three things that Reddit did right during the Boston bombings and why that matters

      Although mainstream media outlets like CNN and the New York Post have come under plenty of fire for the way they handled information during the Boston bombings (Reuters even fired one of its social-media editors), much of the attention has focused on what Reddit got wrong — in part because it seems to puncture many of the hopes and dreams about the value of “crowdsourced journalism.” Reddit’s general manager has even apologized for the community’s behavior. But before we throw Reddit completely under the bus, I think it’s worth looking at what the network got right and why that matters.

      Some of the commentary about Reddit and the bombings has made it seem as though all of Reddit was engaged in a massive “witch hunt” to find the identity of the suspects in Boston. But the reality is that other parts of Reddit were doing things that were much more valuable, and I think we shouldn’t lose sight of that. So here are a few things that I think Reddit got right:

      • It collected verified information: There were multiple Reddit threads that did nothing but curate or aggregate information about the bombings, including links to police reports, news articles and other sources. These threads also helped collect photos and video clips of the Boston marathon that might have contained useful information — and asked anyone with that information to also send those photos and clips to the authorities.
      • It helped people who wanted to help: A number of the threads early on in the aftermath contained lists of all the things that users could do if they wanted to assist not just the investigation but the people who had been injured — from links to Google’s Person Finder and the Red Cross help line to information on where to pick up bags left at the scene, or airlines who had changed their policies on cancelling flights as a result of the attacks.
      • It helped to verify facts: In most of the information-gathering threads, there is real-time verification of the info occurring, as users challenge other users to prove their claims. It is almost identical to the discussion that occurs on a Wikipedia “talk” page, in which editors try to verify the information that is being posted to an entry. Multiple updates occur within minutes of each other, and each one is marked with the time and any edits that took place.

      Is Reddit capable of journalism? Yes

      Even Reddit itself posted a disclaimer on one of its threads that said it isn’t trying to be a media entity, and that what it does isn’t journalism. And the user who created the “Find Boston Bombers” sub-Reddit or thread told The Atlantic that he doesn’t think of it as journalism either, and that no one should ever rely on such threads as a source because there is so much conflicting information flying around. He also admitted that the attempt to identify the bombers from photos was “a disaster.”

      So if even Reddit itself doesn’t claim to be producing journalism, why do I keep saying it is? Because I think Reddit and Twitter and other social tools are broadening the concept of journalism. Some, like my friend Raju Narisetti from News Corp., believe that we should call this kind of thing something else — like that horrible term “user-generated content” — and leave the term journalism for things that are produced by professionals who are held to standards (although some might question whether the New York Post fits that description).

      In a nutshell, I believe that journalism is being atomized — that is, broken down into its component parts. One of those is the news-gathering function, whether it’s from eyewitnesses or just on-the-ground observation. This part of journalism can and is being done by anyone, thanks to what Om has called the “democratization of distribution,” and it can be hugely valuable. And the verification function has also been outsourced, so that people like Eliot Higgins can play a key role in identifying Syria weapons without leaving their apartment.

      Reddit may have failed badly in one specific thread, and that is unfortunate. But other parts of the site have and continue to perform valuable functions that I see as part of the broader landscape or ecosystem of networked journalism. Instead of focusing just on the downside of that community, we should be thinking about how to take advantage of it — how to turn a negative feedback loop into a positive one.

      Post and thumbnail photo courtesy of Shutterstock / wellphoto K

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      • Two deals that make it obvious where Twitter’s heart lies: inside your television

        There were a number of reports last week that Twitter was looking to do TV-related content deals with broadcast networks such as Viacom and NBC so that it could add video clips to its real-time stream, and now we have seen two deals announced that show the kind of thing Twitter has in mind: one with BBC America that was revealed (naturally) via a tweet, and an interesting arrangement with Comedy Central, both of which emerged over the weekend.

        These deals reinforce something I tried to make clear in an earlier post about the company’s plans: namely, if you don’t like television then you’re probably not going to be very happy with the future of Twitter. The deal with BBC America — a joint venture between the British public broadcaster and the Discovery Channel, which carries such popular shows as Doctor Who and Top Gear in the U.S. — will presumably see Twitter run clips from those shows inside its users’ streams, in much the same way it did with ESPN during March Madness.

        TV shows inside your Twitter stream

        There have been other such one-off deals — as well as arrangements like the one with the Weather Channel, which will bring weather clips into Twitter’s expanded tweets — but the BBC America partnership seems to be the first one that involves an entire channel and potentially all of their shows, and it could easily be the prototype for further such deals. But will users react positively or negatively to all of this real-time video showing up in their Twitter streams?

        Meanwhile, Twitter is also launching a somewhat different project with the Comedy Central channel that illustrates just how much the company wants to bring video as an experience inside the stream: the network is launching what it calls a five-day “comedy festival,” but all of the content will appear within Twitter, and most of it will be either created or distributed via Twitter’s recent video acquisition, Vine — which is designed for video clips of six seconds or less.

        According to a report in the New York Times about the arrangement, a number of comedians — including legends like Mel Brooks and Carl Reiner — will be posting video snippets of comedy routines as well as jokes using the hashtag #ComedyFest. On Tuesday, comedian Steve Agee will reportedly host a “Vine Dining” party as part of the festival, in which he and others will tell stories in six-second video clips that will be hosted and distributed by the Twitter network.

        Video plus brands equals ad dollars

        twitter-money-bag

        As my colleague Eliza Kern noted in her post last week about the rumors of deals with Viacom and NBC, these moves are just part of Twitter’s ongoing plans to not only host TV and video content on the network, but to monetize it (or help its creators monetize it) as well. In addition to Vine, one of the recent acquisitions that could help Twitter do that is Bluefin Labs, which specializes in tracking the real-time data about who is watching what show.

        That kind of information — along with the data from Twitter’s partnership with Nielsen, announced last year — would in turn help Twitter appeal to advertisers who are looking for as much targeting information as they can get. And that appeal could be paying off already: according to a report from the Financial Times on Monday, Twitter has signed a major multi-year deal worth “hundreds of millions of dollars” with Starcom MediaVest Group, a large ad-buying firm that represents clients like Walmart and Coca-Cola.

        Moves like these — and the launch of Twitter Music last week — reinforce just how much the company has evolved away from its original nature as a short-messaging service that gave you only 140 characters or less, and could be consumed quickly. Now, it is becoming a lot more like a broadcast network, or at least a willing handmaiden for broadcast networks, as CEO Dick Costolo predicted in a speech last year. But is that what users really want from Twitter?

        Post and thumbnail photos courtesy of Shutterstock / Dmitris K and Eva Blue

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      • The dramatic decline of the Philadelphia Inquirer newsroom captured in photos

        Newspapers were very much in the news this week, in the wake of the Boston bombings and the manhunt for the escaped suspect: many cheered the news coverage of the Boston Globe, in part because of the paper’s shrunken newsroom and the fact that it is up for sale. There are many other newspapers suffering the same fate, including the Philadelphia Inquirer, which went bankrupt in 2009 and was sold last year for $55 million — or about 50 percent less than it sold for in 2010 and more than 85 percent below what it sold for in 2006.

        Photographer Will Steacy has released a somewhat painful photo essay that shows the paper’s dramatic decline. As Wired magazine describes, Steacy’s father worked at the Inquirer for almost 30 years until he and many others were downsized. The shrinking of the Inquirer‘s staff was just a microcosm of the much larger decline of the U.S. newspaper industry as a whole, with the number of full-time media employees now at its lowest level since 1978.

        Inquirer newsroom

        After its bankruptcy, The Inquirer moved its newsroom from the massive, 87-year-old, 526,000-square-foot headquarters known as the “Tower of Truth” in downtown Philadelphia to a single floor of a former department store near Chinatown. Steacy took photos of both the old newsroom and the new — and of everything in between, including most of the remaining staff, the paper’s old printers and the cluttered desks of various editors and reporters.

        Inquirer newsroom1

        The new Inquirer newsroom looks like somewhere a high-school paper would be produced, not a newspaper that serves a city of 1.5 million. And Steacy tells Wired that when his father was laid off in 2011, he actually had to put the project on hold because it became too emotional for him. He believes — as many do — that the future of journalism is a question mark as great newspapers like the Inquirer continue to be downsized or even go bankrupt. As he puts it:

        “The internet, for lack of a better metaphor, makes up the branches of the tree. But newspapers have centuries-long traditions of being the roots of the tree. If the roots of tree rot and crumble the rest of the tree will fall with it.”

        Inquirer newsroom2

        Photos courtesy of Will Steacy

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        • Reddit + Boston: Journalism gets better when more people are doing it

          We’ve already talked about how Twitter has changed the way that real-time journalism functions during news events like the Boston bombings, by taking all the editorial activity that usually happens behind the scenes in newsrooms — the speculation, the fact-checking, and so on — and pushing it out into the open where anyone can take part in it. But it’s not just Twitter, of course: as we’ve seen this week, other social platforms like Reddit are also playing a growing role. Is that good or bad? As with most things on the internet, there’s plenty of both.

          Within hours of the explosions in Boston, members of the Reddit community had created a thread (or sub-Reddit) about the incident, in an attempt to identify potential suspects. Users posted photos that had been published online or submitted by onlookers, and analyzed video clips, piecing together clues like a specific kind of zipper that was used on a backpack found at the scene. Eventually, two potential suspects were identified — including one who posted a message on Facebook about his innocence.

          Plenty of mistakes to go around

          Reddit stickers

          After some more investigation and crowdsourced information gathering, users on the Reddit thread seemed more or less convinced that the two were not likely to be the actual bombers, and eventually declared them “cleared.” Meanwhile, the New York Post identified the same two people as potential suspects and published their photos on the front page (both suspects have now been identified — one was reportedly shot by police on Friday and as of mid-afternoon on Friday the other was said to be on the run).

          Alexis Madrigal at The Atlantic wrote that the process taking place on Reddit amounted to “vigilantism,” and was reprehensible, and warned against encouraging untrained people to try and determine the validity of forensic evidence after such an event. But is what happened on Reddit so bad? And is it any worse than what the traditional media have done in similar situations? I’m not convinced.

          tomwatsontweet

          Yes, users of Reddit made mistakes — plenty of them, including identifying the wrong person as a suspect a second time on Thursday after erroneous information emerged from police scanners and other sources. But CNN and the NY Post have made plenty of mistakes as well, something Ryan Chittum of the Columbia Journalism Review doesn’t really mention in his post about how brilliant the traditional media was and how wrong Reddit has been. The larger point is that this isn’t an either/or situation — crowdsourcing is valuable, and has been valuable for journalism and will continue to be.

          Remember when we didn’t think random people putting together an encyclopedia would ever work? And yet it has — in part because it has a lot more structure than Reddit or 4chan. And those sites would probably be a lot more useful in these cases if people spent more time thinking and less time typing. But that doesn’t negate the value they can provide. The idea of using the knowledge and resources of the crowd is the whole point behind Guardian editor-in-chief Alan Rusbridger’s “open journalism,” and it is a force we need to figure out how to tame, not dismiss as irrelevant based on one incident.

          Open journalism works better

          Reporter

          Am I calling what Reddit has been doing since the Boston bombings journalism? Yes. It may not encompass the entirety of what we know as journalism, and it is clearly flawed, but it is certainly an important aspect of it — just as Eliot Higgins, an unemployed British accountant, is performing a valuable journalistic act (one that New York Times writer C.J. Chivers has recognized) in verifying smuggled weapons in Syria by watching hundreds of hours of YouTube videos every day, even though no one is paying him to do so.

          monicaguzmantweet

          Will Oremus at Slate makes a fairly persuasive argument that Reddit has in some cases been *more* responsible in its attempts to identify the individuals than some traditional sources, including the Post. This kind of crowdsourced fact-checking and verification of evidence has been going on for years — it’s just more mainstream now. And anyone looking for evidence of someone jumping the gun and encouraging vigilantism doesn’t have to look any further than CNN.

          When I wrote recently about the benefits of having journalism occur out in the open, journalism teacher Steve Fox and others said I didn’t spend enough time on the need for verification, and maybe I didn’t, but I believe this also should be done out in the open. In fact, one of the benefits to doing so is the ability to have more eyes on the information at hand — thereby making it easier to filter out the noise and find the signal, or triangulate the truth. As Jay Rosen has said, journalism gets better the more people there are doing it. And that includes Reddit.

          mattberniustweet

          Post and thumbnail photo courtesy of Flickr users Christian Scholz and Eva Blue and Jan-Arief Purwanto

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        • Takeaways from paidContent Live: Paywalls, sponsored content and massive disruption

          The world of media is being disrupted at an even faster rate than ever, it seems — both the content side and the advertising side — and our paidContent Live conference in New York on Wednesday was full of fascinating viewpoints and analysis from some of the writers, publishers, startups and investors who are playing key roles in that disruption. From the book industry to news and journalism to cable television, business models are being exploded by new entrants and new technologies, and while that causes destruction in some parts of the media industry, it also creates opportunity as well.

          There was much talk about both aspects of this ongoing evolution at the conference, from people like star blogger Andrew Sullivan and Tumblr founder David Karp to investor Ken Lerer and Guardian editor-in-chief Alan Rusbridger. What follows are just some of the key lessons or moments that struck me as significant during the show (you can also read our live coverage of each session and watch livestreams of each panel as well).

          Paywalls vs. open journalism:

          During my interview with him, one of the key points that Guardian editor Alan Rusbridger made was that there is a very clear tension between the efforts by an increasing number of newspapers to erect paywalls — in order to bolster their revenue — and the philosophical approach to journalism that sees openness and interactivity with readers as a cornerstone of what journalism has become. As Rusbridger put it:

          “It is journalism that wants a response. It is journalism that is itself responsive. It is journalism that doesn’t just sit on the web as though it has no connection with the web, that acknowledges that the web is the most extraordinary revolution in publishing where lots of people will be publishing extremely worthwhile and informative information. And so you can produce better things by not ignoring it or building a barrier between yourself and that but incorporating it and linking to it.”

          paidContent Live 2013 Alan Rusbridger Editor in Chief The Guardian

          The many different flavors of paywall:

          Much of the discussion that took place on the monetization panel — which featured Dick Tofel of ProPublica, Justin Smith of Atlantic Media, Raju Narisetti of News Corp. and Bob Bowman of Major League Baseball — was about the myriad ways in which media companies can charge for their content. Bowman argued that every media company should be charging its users, even if it is through some kind of “pro” version, and Smith announced that The Atlantic will soon be launching a content offering related to the magazine that will be subscription only, although he didn’t say what kind of content it would be.

          Narisetti also talked a bit about his vision of a “reverse paywall,” which focuses more on membership benefits that readers could accumulate based on their engagement with a site — although Bowman said he thought this would just encourage readers to click on ads or perform other tasks in order to get something for free, and that advertisers would quickly see through this gaming and not be interested in advertising around it. Smith also pointed out that The Atlantic‘s event business produces a lot of revenue for the company, and therefore decreases the need for a strict paywall.

          No one can agree on sponsored content:

          On the panel that focused on the increasingly blurry line between editorial content and advertising, Felix Salmon of Reuters challenged Jon Steinberg of BuzzFeed, Kyle Monson of Knock Twice and Forbes chief operating officer Lewis D’Vorkin to define their terms — but the panelists spent most of their time debating whether “native advertising” of all kinds is inherently unethical or duplicitous in some way (the view held by Andrew Sullivan, who has railed against the phenomenon).

          Steinberg maintained that the conventional wisdom that says average readers are confused — and in some sense misled — by sponsored content is hogwash, and that this is essentially a lie perpetrated by traditional media entities who continue to rely on banner advertising for their revenue. According to the BuzzFeed president, banner ads are a dying medium, and some form of sponsored content is the only real alternative. Monson, however, argued that if native advertising becomes too ubiquitous, readers will begin to ignore it the same way they currently ignore every other form of advertising.

          Independence is a doubled-edged sword:

          paidContent Live 2013 Andrew Sullivan The Dish Andrew Ross Sorkin NYT Maria Popova Brain Pickings Tim Ferriss The 4-Hour Workweek

          (L to R:) Andrew Sullivan, Editor, The Dish; Andrew Ross Sorkin, Columnist, NYT; Maria Popova, Writer, Brain Pickings; Tim Ferriss, Author, The 4-Hour Workweek paidContent Live 2013 Albert Chau / itsmebert.com

          One of the highlights of the conference for many (including me) was a panel composed of superstar bloggers and authors Andrew Sullivan, Maria Popova, Andrew Ross Sorkin and Tim Ferris. Sullivan has famously bet his livelihood on going direct to his readers for financial support — although he maintained that he is not anti-advertising, as some have assumed. He said he is dedicated to that approach even to the point of not taking a salary until he can prove that the model works, and that he values his independence and his direct relationship with readers over the comfort of working for a large media entity.

          Andrew Ross Sorkin, by contrast, has been able to build a fairly large team and business model for himself inside the New York Times — even though he could probably (or theoretically) have created something similar, and more independent, on his own. Sorkin said that his interest in remaining inside a large media entity stems in part from the resources it puts at his disposal, and partly from his commitment to the brand itself, since the paper took a large bet on him years ago when he created DealBook.

          There was a lot more to the conference that I haven’t even touched on here — including a startup showcase featuring new platforms like Circa and Branch, a panel on the use of algorith-driven personalization with Mark Johnson of Zite and Aria Haghighi of Prismatic, a great look at the future of books with Dominique Raccah of Sourcebooks and Evan Ratliffe of Atavist, a discussion between Om and John Borthwick of Betaworks, and an interview with the architect of Aereo’s ongoing disruption of cable.

          Thanks to all those who attended and to all of our speakers as well.

          Post and thumbnail images courtesy of Albert Chau

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        • Podcast: How Joey Coleman crowdfunded his work as a hyper-local reporter

          We’ve written about projects like Matter, which used Kickstarter to fund the creation of a new magazine for science writing, and high-profile bloggers like Andrew Sullivan who go directly to readers for financial support — but could a relative unknown in a small town use crowdfunding to build a business covering city hall and other local news?

          Joey Coleman says yes. He has done not one but two successful Indiegogo campaigns to raise money to cover his home town of Hamilton in Canada, where he writes about everything from the local elections to fires and other breaking news.

          In a multi-part podcast series leading up to our paidContent Live conference on April 17 in New York, we’ve been talking to people who are doing innovative things in media, and Joey Coleman is definitely one of those. He doesn’t have a background as a journalist — he is just a tech-savvy resident of a town where he believes that not enough is being done to cover local stories. After starting a blog and having a number of readers offer to pay him for his reporting, he decided to do some crowdfunding.

          In our podcast interview, Coleman told me that he hopes to turn his crowdfunding efforts into a regular subscription model, and potentially even hire other reporters and photographers to help with the job of covering the news, streaming local council meetings, etc. — but unlike some of those with paywalls (including the major media outlets in his home town), Coleman says his content will always be free to the public. For more on Joey and his project, please have a listen.

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          • Twitter shows how the news is made, and it’s not pretty — but it’s better that we see it

            Not long after the Boston Marathon bombings occurred on Monday afternoon, several Twitter users noted that these kinds of real-time news events illustrate how incredible the service is as a source of breaking news, but at the same time how terrible it is. Sure enough, there were plenty of fake news reports to go around on Monday, from reports of suspicious vehicles to the arrest of alleged perpetrators — just as there were during Hurricane Sandy and the school shootings in Connecticut. But does that invalidate Twitter as a news source? And should the service try harder to filter out bad information and highlight verified news reports? I think the answer to both of these questions is the same: No.

            Erik Wemple of the Washington Post noted that in some cases Twitter can act as a “news ombudsman,” pointing out that there were a number of people advising caution in the tweeting and re-tweeting of details about the blasts, although Wemple may also have been following more members of the media than the average person (ironically, some criticized Wemple himself for being too quick to post his thoughts about Twitter use during the aftermath of the bombings).

            This in itself illustrates one of the problems with Twitter as a news-delivery vehicle, which is that no one can agree on the proper behavior during such events — or at least not enough people to make it worthwhile. When (if ever) is it too soon to speculate about the source of the attack or details like the number of wounded? Which sources are reliable and which aren’t when it comes to retweeting? Does everything have to be verified? Is it okay to retweet graphic videos and photos?

            Journalism in real time, with all its flaws

            These are all the same challenges that breaking-news outlets like CNN face, but they have teams of seasoned editors to make those decisions (and still often get them wrong — perhaps even as wrong as Twitter does). Twitter has nothing but a short attention span, a hair trigger and a couple of buttons that say “tweet” and “retweet,” and they are all too easy to push. Should more people think twice before they click them? Undoubtedly. Will they? Probably not.

            That said, however, there’s no question that Twitter is one of the best tools for breaking-news delivery since the telegraph. Unfortunately, it is also a great tool for distributing lies, speculation, innuendo, hoaxes and every other form of inaccurate information. I’ve argued before that this is just the way the news works now — the news wire and police scanner are no longer available only to journalists, but to anyone who cares to listen. And so is the ability to republish.

            Should Twitter do more to verify sources, or highlight accurate information, as some have suggested? It’s an appealing idea. The service could try to use geotagging to identify those who are close to the scene, or some other method to determine credibility — something third-party services like Sulia and Storyful also try to do through a variety of methods. But is that really Twitter’s place?

            Leave verification to the journalists

            Why don’t we get YouTube to verify the source of videos as well, like the ones that are posted from Syria or Egypt? Or get Google to sort the news it pulls in based on the likelihood of it being credible? The simplest answer is that this isn’t what those services are for — they are distribution engines, or pipes (a series of tubes, if you will). Asking them to become news entities is a little like asking AT&T to eavesdrop on phone calls in order to figure out who is a terrorist.

            Rather than relying on Twitter to do this, I think it’s far better to accept the somewhat chaotic nature of the medium, and rely on journalists — and not just the professional kind, but the amateur kind as well — to filter that information in real time, the way Andy Carvin did during the Arab Spring (by using Twitter as a crowdsourced newsroom) and others did during Hurricane Sandy and the Colorado shootings. Over time, I believe, Twitter becomes a kind of self-cleaning oven, as writer Sasha Frere-Jones put it.

            Sure, it’s messy and erratic, but that’s because it is made of human beings. Traditional media is like that too, we just rarely see it happening out in the open. But I believe that having it happen out in the open is ultimately better than keeping it behind closed doors.

            Post and thumbnail images courtesy of Flickr user Petteri Sulonen

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            • Foursquare closes $41M debt financing, ups the ante on a high-risk gamble to own local recommendations

              Foursquare announced on Thursday that it has raised $41 million in financing from a group of venture funds, but in an interesting twist the funding is convertible debt rather than equity. To some, that reinforces just how much pressure the company is under to show that it has an actual business, and that it can someday generate enough value to justify the financing it has already raised. In other words, the company and its investors have upped the ante on an ambitious bet.

              BusinessWeek broke the news of the Series D funding round early on Thursday, an article that was quickly followed by a post from founder Dennis Crowley on the official Foursquare blog — entitled “Continuing Foursquare’s Growth” — and posts from two separate partners at one of the company’s main financial backers, New York-based Union Square Ventures.

              Crowley compares the challenges to Google

              In his post, Foursquare founder and CEO Crowley describes the challenges ahead — including some fairly dramatic technical challenges, such as the need to index and filter more than 3.5 billion check-ins and other location data in something approaching real time, in order to successfully recommend to users a restaurant or other business that fits their needs. Crowley compares it to the kind of data wrangling that Google has to do in order to provide search results:

              “To us, this is like when Google came and revolutionized web search. Suddenly, you could find things on the internet. The real world is the same way. Four years ago when we started Foursquare, it was really hard to discover a new retro arcade that opened up on a side street, or to make sure you weren’t overlooking the best dish on the menu, or to know a good friend was just around the corner. Sometimes, we think of Foursquare as having the ability to give people superpowers for exploring the real world.”

              location

              In a post at the Union Square Ventures blog, Albert Wenger talked about the potential for Foursquare to capitalize on its new focus as a platform for discovering local businesses — something GigaOM’s Eliza Kern highlighted in her post on the newly redesigned Foursquare app, which launched on Wednesday. In effect, the company is going head-to-head with local recommendation services like Yelp, and giving up its earlier focus on “gamification” elements like mayorships and badges.

              Debt instead of a lower valuation

              Union Square Ventures partner Fred Wilson, meanwhile, wrote a post on his own blog about the fact that Foursquare chose to (or was forced to) use convertible debt rather than equity. As Wilson explains, this kind of late-stage debt issue is often used when a company doesn’t want to (or can’t) raise equity because doing so would involve a “down round” — in other words, raising money at a lower valuation than it was given in earlier rounds. As he described it:

              “Both of our firms have been investors in Foursquare for several rounds and both of us own a meaningful stake in the company. Valuation is somewhat immaterial to us as our stake in the company is not going to increase much in this round of financing. But valuation is very material to the Foursquare management team because $41mm of capital is going to be dilutive at any valuation that would make sense here.”

              As Foursquare has evolved from being a fresh young startup with the hot iPhone app — which it was in 2009, when it launched at the SxSW festival — into a four-year-old company that has raised a total of $70 million in three separate rounds, it has faced increasing pressure to prove that it has a real business, along with questions about whether it can ever justify its earlier valuation, which was in the $600 million range. In a report in January, private-company research firm PrivCo argued that Foursquare could go out of business by the end of the year unless it raised more money.

              In a much-publicized spat on Twitter last month, investor Keith Rabois — a former PayPal founder who is a backer of Foursquare competitor Yelp — said Foursquare’s only option was to be acquired, because it had failed to back up its valuation with any real business success.

              Foursquare needs to prove it is a business

              foursquareradar

              Foursquare’s biggest problem is that it hasn’t been able to generate any meaningful revenue from the millions of users and partnerships it has announced over the past couple of years — according to an anonymous source quoted in the BusinessWeek article, the company had revenue last year of just $2 million, which makes a $600-million valuation look almost ridiculous. According to Crowley, much of the new financing will be used to develop advertising products that can run next to Foursquare’s local recommendations.

              Despite its inability to produce revenue, the company’s supporters remain optimistic about its chances of building a truly large-scale and profitable local recommendation service. Hunter Walk, a former YouTube staffer turned venture capitalist, said on Twitter “All I know is the financing allows them to continue building a product I love,” and Shai Goldman of the 500Startups angel fund said: “I hope they figure out how to monetize, I’m a fan.” Even John Lilly of Greylock Partners, which didn’t invest in the company, said on his blog that he thinks Foursquare has a chance to build a real business:

              “What does matter is that they raised the money they need to give this a real go. I have high confidence in these guys that they’ll do well and build interesting products and a great business for a long time.”

              Others, however, were less complimentary — and many seem to see Foursquare as a high-risk bet, much like email-offer flameout Groupon:

              Post and thumbnail photo courtesy of Pinar Ozger

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            • Tumblr abruptly closes down its Storyboard project, lays off entire editorial team

              A year ago, Tumblr launched an ambitious attempt to curate content from within the blog network — a unit known as Storyboard, with its own editorial staff who highlighted and aggregated posts from popular Tumblrs. Although the company seemed to have high hopes for the project, founder and CEO David Karp announced late Tuesday night on the official Tumblr blog that Storyboard has been shut down and the staff of the unit have been let go.

              In his post, Karp (who will be joining us at our paidContent Live conference on April 17) said that the idea behind the project was to create an editorial team of “experienced journalists and editors assigned to cover Tumblr as a living, breathing community” and to “tell the stories of Tumblr creators in a truly thoughtful way.” The Tumblr founder went on to say that:

              “After hundreds of stories and videos… we couldn’t be happier with our team’s effort. And as Tumblr continues to evolve, we’ll always be experimenting with new ways to shine light on our creators [but] what we’ve accomplished with Storyboard has run its course for now, and our editorial team will be closing up shop and moving on. I want to personally thank them for their great work.”

              The Storyboard team included Sky Dylan-Robbins, executive editor and former Newsweek/Daiy Beast staffer Jess Bennett — who posted on her own Tumblr that the group had “redefined journalism” and that she was “drunk on a plane” — editor-in-chief Chris Mohney and Christopher Price. A number of outlets wrote about Tumblr’s ambitions with the unit, which did what Mohney called “marketing as journalism.”

              Although Tumblr has posted some fairly large traffic numbers, with more than 140 million unique visitors and 20 billion pageviews, the company has struggled to generate revenue — only recently launching an advertising program for its mobile app, after a long period of rejecting such money-making measures — and has promised that the network would be profitable this year.

              Post and thumbnail photo courtesy of Pinar Ozger

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              • This is about more than just advertorial — it’s about brands going direct

                We’ve been writing a fair bit lately about “native” advertising or sponsored content, including a recent post about BuzzFeed’s challenges in relying on that as a business model. But as former Forbes.com founder David Churbuck points out in a recent essay, this phenomenon is about a lot more than just traditional publishers trying to adapt to what advertisers want in terms of content — it’s about brands and advertisers literally becoming publishers themselves.

                Churbuck, who helped create Forbes.com and later went on to work with McKinsey, was responding to a piece in the New York Times about the increase in sponsored content, and how it is being used in different ways by publishers like BuzzFeed, The Atlantic, Mashable and Forbes — a piece that includes some pointed criticism of the trend from blogger Andrew Sullivan (Note: We’ll be discussing this and other issues around publishing at paidContent Live on April 17)

                Digital publishing

                As Churbuck points out, this focus on how sponsored content is being used by existing publishers ignores a much more disruptive force, which is brands using the same tools to “go direct,” as blogging pioneer Dave Winer has described it — something we at GigaOM and paidContent have been writing about for some time now. Says Churbuck:

                “The Times missed the bigger trend: marketers going direct to their prospective buyers by becoming their own publishers, producing their own media and using professional editorial placements only to rent names, just as marketers have been renting circulation lists for decades to drive their direct mail campaigns.”

                Cheap tools and an oversupply of talent

                The former Forbes executive goes on to detail some of the examples of this broader phenomenon that have been growing and evolving for some time, including brand “newsrooms” such as the ones that Intel and Cisco manage — which in many cases consist of unbranded content about technology that looks indistinguishable from any other tech blog. Churbuck also mentions:

                • Branded partner-produced content: These are sites that get produced in partnership with a media company, such as Intel’s “Creators Project,” which is a joint venture with Vice. Another brand that is producing its own Vice-style content is Red Bull.
                • Brand magazines: As Churbuck notes, in the past advertisers like IBM or the Four Seasons hotel chain would hire the “custom publishing” arm of media companies like Forbes or Fortune to produce an advertorial magazine, but now they can easily create their own.
                • The talent exodus: Senior writers and editors have been moving from traditional media to content-related positions at non-media companies — Churbuck mentions Fortune’s Rik Kirkland going to McKinsey to edit the McKinsey Quarterly and oversee the firm’s editorial strategy, Steve Hamm of Businessweek going to IBM, and Dan Lyons leaving Read/Write Web to join HubSpot.

                Ignoring this phenomenon is not a strategy

                As Churbuck notes, the driving force behind this trend is the desire to reach customers and potential customers directly and engage with them, and producing their own content allows them to “cut out the editorial middle-man.” It also allows them to be more agile and effective when crisis strikes, he says. And most importantly, he argues that trying to remain above the fray and not even experiment with sponsored content is a head-in-the-sand approach:

                “They will either produce the content as a service to the corporate advertiser or see their former editors and reporters get hired away to do it under the more stable umbrella of a big organization with deep pockets. That the press is now selling the opportunity to publish corporate content next to their own reporting is a foregone conclusion. Hand wringing and saying one is ethically ‘aghast’ is the personification of the cliché, ‘pride goeth before the fall.’”

                Post and thumbnail images courtesy of Shutterstock / Goodluz

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              • The Empire acquires the rebel alliance: Mendeley users revolt against Elsevier takeover

                In a much-rumored deal announced on Tuesday, academic publisher Elsevier (please see disclosure below) is acquiring Mendeley — a widely-used open platform for collaboration and networking related to scientific research — for about $70 million. While the founders of the network maintain that they are committed to the “open access” movement, and argue that having Elsevier’s resources will allow them to expand their work and make it even more accessible, a number of high-profile users have said they aren’t convinced that Elsevier has changed its stripes, and they are taking their work elsewhere.

                One of the most prominent, Microsoft researcher danah boyd (who spells her name without capital letters), said on Twitter that the takeover was “sad,” and that she doesn’t believe Mendeley can help Elsevier repair the reputation it has developed for being against open access to research — a reputation that is based on the publisher’s support of the failed anti-piracy legislation SOPA, among other things.

                zephoria 1

                zephoria 2

                Another prominent critic of the acquisition is David Weinberger, a senior researcher at Harvard’s Berkman Center for Internet and Society and a co-director of the university’s Library Innovation Lab, which played a role in designing the new Digital Public Library of America project. Despite the assurances of executives at Mendeley that it would remain open — including its access API — Weinberger expressed scepticism that the company would be able to resist Elsevier’s attempts to make it more closed.

                https://twitter.com/dweinberger/status/321605268817469440

                https://twitter.com/dweinberger/status/321605790781825024

                https://twitter.com/dweinberger/status/321606366269681664

                Some of those who responded to the news of the acquisition seemed to see Mendeley’s acceptance of the takeover as a breach of faith, since the company had been such a vocal supporter of the open-access movement — a movement that many saw as directly opposed to the interests of companies like Elsevier. At least one observer compared it to “Haliburton buying Greenpeace,” and others made comparisons to the Empire in the Star Wars movie universe, or the Borg from Star Trek — both evil forces who eventually absorb or destroy the heroes of the story.

                Elsevier has been the target of a sustained attack from open-access advocates who organized a boycott of the company’s journals, galvanized by Fields Medal-winning mathematician Tim Gowers — arguing that its publications are too expensive and keep valuable research locked up in a virtual cartel. One commenter on a news story about the Mendeley acquisition said: “They spent their whole life as a company arguing they were the next big thing in open publishing only to sell out,” while a commenter on a thread at Hacker News about the deal said:

                “Mendeley should be ashamed, and you personally should be ashamed for perpetuating this nonsense. Within a year your company will be effectively dismantled and anyone left over who actually cares about open access can start over from scratch. I wish them luck.”

                Zeynep screenshot

                News of the acquisition re-ignited interest in the “mendelete” hashtag on Twitter, which was devoted to criticisms of the deal and the exploration of alternatives such as Zotero. One commenter said: “Was Mendeley more about its values or its services? Some of its biggest supporters have become its shrillest critics #mendelete.” If nothing else, these kinds of responses show just how much work Elsevier has ahead of it when it comes to reassuring academics and others that their commitment to openness is real. As Emily Bell at Columbia University put it:

                tweet https://twitter.com/emilybell/status/321606936061689856

                Disclosure: Reed Elsevier, the parent company of science publisher Elsevier, is an investor in GigaOmniMedia, the company that publishes GigaOM.

                Post and thumbnail images courtesy of Shutterstock / Luis Santos

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              • Digital First Media’s John Paton on newspapers and paywalls

                A company with the name Digital First Media has a reputation to uphold when it comes to thinking about the future of publishing, and CEO John Paton didn’t disappoint in a recent interview with a reporter for one of his chain’s newspapers. Among other things, he talked about paywalls, and also about where he plans to take the company in the future. Here are a few excerpts:

                • On paywalls: “I don’t think paywalls are the answer to anything. If we’re swapping out print dollars for digital dimes, I think paywalls are a stack of pennies. We might use the pennies in transition to get where we’re going.”
                • On the future of print: “Newspapers in print are clearly going away. I think you’re an idiot if you think that’s not happening. I don’t think that news organizations are dying but are newspapers going to stop running in print? Yeah. Absolutely.”
                • On print vs. digital: “We have $1.3 billion in revenue. And of $1.3 billion, $900 million is advertising and $165 million of the advertising is digital advertising. That $165 [million] is going to have to more than double in three years. To do that, we’re going to have to take some risks on the print side. That’s the one thing that scares the [expletive] out of everybody.”
                • On newspapers: “I love newspapers. I’m a newspaperman. My father was a printer. I started off as a copyboy. I love newspapers. But they don’t love me anymore.”

                Paton also talked about the bankruptcy of one of Digital First Media’s subsidiaries, the Journal-Register Co., which filed for court protection last year for the second time — driven by what DFM said were massive commitments related to pensions and other costs taken on when the newspaper industry was better off financially. A group of funds managed by Digital First’s financial backer Alden Global eventually bought the company’s assets back. Said Paton:

                “The process allowed the company to shed a bunch of legacy obligations it could never afford that it incurred when it was a much bigger company. The Journal Register incurred most of its long-term debt, most of its pension obligations, most of its lease obligations when it was nearly twice the size the company that it is today, which is kind of what’s happening to newspaper companies.”

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              • Why BuzzFeed’s attempt to reinvent online advertising is a lot harder than it looks

                If there’s a poster child for the phenomenon of “native” advertising — also known by other names, including sponsored content — it is BuzzFeed, the digital-only publisher created by Huffington Post alumnus Jonah Peretti. Unlike some content companies that are just experimenting with these new forms of advertising, BuzzFeed has staked its future on the format, refusing to carry traditional ads. But as a recent profile of Peretti and his company in New York magazine makes clear, reinventing advertising is no walk in the park — and while BuzzFeed may have a head start, it is still far from that goal.

                As the NY magazine piece points out, word of mouth is the holy grail for advertisers: customers talking about your product (or something related to your product) without you paying them to do so is the ultimate recommendation. Madison Avenue legend David Ogilvy said it was “like manna from heaven, but nobody knows how to do it on purpose.” In a nutshell, that’s what Jonah Peretti has been trying to do ever since he himself went viral in 2001, after a stunt he came up with involving a Nike shoe and some bad press for the company’s foreign manufacturing.

                This is fundamentally the same reason advertisers are interested in social networks like Facebook and Twitter: because they are hoping to figure out how to both create “social” advertising messages and target them in such a way that they don’t really seem like advertising, thereby encouraging users to share them. The only problem is that no one really knows how to do that (Note: We’re going to be talking about sponsored content and other monetization methods with BuzzFeed president Jon Steinberg, among others, at paidContent Live on April 17).

                How does virality work? No one really knows

                virus sign

                Everyone can recognize a viral campaign when they see them after the fact, but no one quite knows how to produce them in any kind of scientific way. Microsoft researcher — and Peretti friend — Duncan Watts has studied this area more than just about anyone, and he and the BuzzFeed founder (who co-authored a paper in 2007 on the topic for Harvard Business Review) both have algorithms that try to describe the process. But Watts admits it is far more chaotic and difficult to predict than those algorithms suggest.

                “We have this very Newtonian view of causality,” Watts, a square-jawed Australian, shouted over the din. “Like, billiard balls hitting each other, that’s the most complicated thing that we can wrap our heads around.” But his research suggests that the commonly understood, Gladwellian model of virality, with its linear progression through influencers and tipping points, doesn’t really reflect the way viral messages spread.

                Even Peretti, who has gained a reputation for being able to engineer virality, seems to concede that it is harder than most people think. The New York magazine piece says the BuzzFeed founder became visibly irritated when told that some advertising industry critics don’t see the site’s sponsored content as being that valuable — with one ad agency executive arguing that showing readers “a bunch of cats” isn’t really helpful when it comes to doing actual marketing. “Could you make a list of cute animals that gets 5 million views? It’s actually really hard,” Peretti shot back.

                Some advertisers are resistant to the idea

                Advertising

                So one reason why BuzzFeed’s attempt to reinvent advertising is going to be a lot harder than it looks would be simple resistance from the ad industry itself: for all of Peretti’s talk about how sponsored content can bring back the creativity and storytelling aspect of advertising, many agencies and other players don’t seem convinced that putting their brand name on a piece about dogs who look unimpressed is going to help them move more product. The BuzzFeed founder may see this as short-sighted, but it is still a hurdle.

                Another barrier is related to this one: namely, the fact that some of BuzzFeed’s sponsored content winds up doing the exact opposite of going viral. According to the NY magazine story, some of the content that Virgin America and other brands spent hours creating in collaboration with BuzzFeed — tinkering with it until they were convinced they had engineered it to be as viral as possible — more or less fell flat and disappeared without a trace. One post had just 350 shares on Facebook, which is the equivalent of a damp squib in social-networking land.

                “Other campaigns running on the site… showed smaller results: Geico, 140,000 views; GE, 65,000 views; Pepsi Next, 44,000 views. These numbers don’t quite match the hype around native advertising, which might be why ad agencies sound much less enthusiastic about the medium’s transformative potential than publishers do.”

                It’s also expensive — and potentially risky

                money dollar bills benjamin franklin cash

                A third hurdle to BuzzFeed’s ambitions is implied by both of the others, and that is the cost of producing the kind of content that the site wants to lure advertisers into sponsoring. All of the meetings that the NY magazine piece describes, in which a dozen or more editors work on posts and then decide which ones to market heavily (a process that somewhat ironically includes the use of ads on Facebook and elsewhere) makes for an expensive process.

                And one final hurdle is the one highlighted by blogger Andrew Sullivan in a series of posts about the evils of sponsored content and of BuzzFeed’s approach in particular: namely, that the site will be unable to maintain the trust of its readers if it blurs the line between editorial and advertising too much. The NY magazine story describes several posts that could easily be mistaken for ads — even though they aren’t — and other posts that began as non-sponsored content and then were more or less recreated as advertising for specific brands.

                BuzzFeed has $20 million in new financing, and New York magazine estimates that based on what it charges for a piece of sponsored content, the site could make as much as $40 million in advertising revenue this year. But building a profitable business based on the creativity of human beings in an area as unpredictable as online content — while retaining some credibility — is not an easy task. Just ask the traditional media industry.

                Post and thumbnail images courtesy of Shutterstock / Everett Collection as well as Flickr users Nils Geylen and 401K, and Shutterstock / Eldorado3D

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              • Allen Stern, blogging pioneer and entrepreneur, passes away — we will miss you Allen

                Allen Stern, an early blogger as well as an entrepreneur and an all-around great human being, passed away last week, according to an update posted on his Facebook page by his sister Sari Rosenberger. The cause of death was not clear, but his loss triggered an outpouring of condolences from those who had known him — both in person and through his blog, Twitter and other social networks.

                Before blogging became a big business, Stern created a tech blog called Center Networks, which became a go-to destination for many in the early Web 2.0 movement. Later, he sold that business and shifted focus to a new startup called CloudContacts — and more recently, he moved from his home town of New York to Austin, Texas to start a company called Let’s Talk Fitness.

                Having struggled with his weight for much of his life, Stern poured his energy into becoming more healthy, and had lost more than 125 pounds in the past year or so, according to his friend Louis Gray. His most recent business was aimed at helping others achieve similar results with the use of fruit and vegetable smoothies and other products, and he had built a large following for his newsletter.

                Here’s what Om had to say about Allen:

                “He was a stand-up guy and always spoke his mind. He never took to fools and as a result always found himself defending those who couldn’t defend themselves. I met him once, briefly at a Techcrunch 50 event, but we were internet friends and often exchanged Facebook and Twitter messages. He was always in good cheer, ready to share a moment of sadness and spread the happiness. As a fellow Yankees fan, he and I would often talk baseball during our exchanges.”

                Louis Gray, a startup advisor who now works at Google and wrote a remembrance of his friend on his blog, had this to say:

                “I’ll miss Allen. I missed it when he stopped posting as regularly to CenterNetworks as he once did. But more, I’ll miss the fun email threads and fun phone cals that always left me laughing and feeling better. Death sucks and tonight, I’m sad. Bye, Allen.”

                Others have also posted their memories of Stern, including Dan Lewis — who founded the site ArmchairGM and is now the director of new media for Sesame Workshop — and another early blogger named Duncan Riley, who said Allen would be sorely missed by friends who “came to appreciate a big guy with a huge heart who spoke as we all should: honestly and from the heart.” Author and entrepreneur Jesse Stay posted on his Google+ page:

                “This is devastating news – even though we never met in person (but I sincerely hoped to, and have had numerous remote video conversations with him), I considered Allen Stern a dear friend of mine. He always knew how to lift people up and make them laugh. I sincerely enjoyed his health posts as of recent, and am very sad to hear of his death. This was way too soon, and many, I’m sure are mourning with me.”

                As tech blogging became more and more of a cut-throat business, Allen remained a personal friend to most, and was always sincere in his openness to others. As Om put it: “The world just got a lot less nicer because of this one subtraction. Give heaven a taste of your heaven, Allen — you will be missed by me and thousands of others whose lives you touched.”

                Screen Shot 2013-04-07 at 10.57.05 AM

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                Post and thumbnail images courtesy of Flickr user Chris Tingom

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              • When cancer stole Roger Ebert’s voice, Twitter gave him a new one

                After a long battle with cancer — which took away his vocal chords and eventually most of his lower jaw — veteran Chicago-based film critic Roger Ebert passed away on Thursday, leaving a host of passionate film buffs mourning his loss. Many of those fans likely formed an even closer connection to him after he could no longer speak without the aid of a computer, because of his enthusiastic use of Twitter and other social-media tools. He may have been just a movie reviewer to some, but mainstream journalists of all kinds could learn a lot from his example.

                Twitter didn’t turn Ebert into a star, of course — he was already well known as half of the Siskel and Ebert movie-reviewing team long before he moved online, and his TV presence in turn came about because he was a popular film columnist with the Chicago Sun-Times. But after he was diagnosed with thyroid cancer in 2002, and had to have a series of operations that eventually left him unable to speak without a computer voice simulator, he poured much of his enthusiasm for life and the movies into Twitter and other social-media tools, including his personal blog.

                In a piece he wrote in 2010 for his Chicago Sun-Times blog, Ebert celebrated the role that Twitter played in his life, something he said he never expected to say of the social network that he originally saw as an irrelevant distraction. As he put it:

                “I vowed I would never become a Twit. Now I have Tweeted nearly 10,000 Tweets. I said Twitter represented the end of civilization. It now represents a part of the civilization I live in. I said it was impossible to think of great writing in terms of 140 characters. I have been humbled by a mother of three in New Delhi. I said I feared I would become addicted. I was correct.”

                The part about being humbled by a mother of three in New Delhi says a lot about how Ebert used Twitter to connect with his readers — and critics. His passing was mourned by celebrities, but he was also more than willing to talk (and argue) with just about anyone who felt like engaging with him, and not just about movies but about plenty of other things as well. One follower who took part in a debate with him remembered how he and Ebert argued about the artistic value of video games.

                In a sense, Ebert’s adoption of Twitter was somewhat ironic, since social media has helped to rob traditional movie reviewers of much of their authority — to the point where many newspapers don’t even employ a dedicated reviewer any more. But for Ebert, it became a lifeline, and one that only enhanced his popularity. He also came up with his own rules for how to use Twitter, which are good advice not just for journalists but for anyone:

                “My rules for Twittering are few: I tweet in basic English. I avoid abbreviations and ChatSpell. I go for complete sentences. I try to make my links worth a click. I am not above snark, no matter what I may have written in the past. I tweet my interests, including science and politics, as well as the movies. I try to keep links to stuff on my own site down to around 5 or 10%. I try to think twice before posting.”

                His interest in new-media tools extended beyond Twitter too: While many media outlets like The Atlantic are experimenting with “native advertising” and Gawker is trying out affiliate links, Roger Ebert started playing around with those kinds of monetization methods over two years ago — making a few of his daily tweets recommendations, with an Amazon affiliate link included. Although he got some criticism for doing so, most of his fans were happy for him to have the extra revenue.

                But it was Twitter that captured Ebert’s heart the most, because it said it was like having a running conversation — something he could never again have in real life — with thousands of people from all around the world, with all of the ups and downs that any conversation brings:

                “When you think about it, Twitter is something like a casual conversation among friends over dinner: Jokes, gossip, idle chatter, despair, philosophy, snark, outrage, news bulletins, mourning the dead, passing the time, remembering favorite lines, revealing yourself.”

                Ebert certainly did reveal himself — as human, and vulnerable, and funny, and smart. That made his fans love him and look forward to his reviews all the more. And that is the power of social media in a nutshell.

                Post and thumbnail images courtesy of Shutterstock / FeatureFlash

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              • Why is it so hard for us to imagine that a site like BuzzFeed could do serious journalism?

                BuzzFeed may be known to most for its “viral” posts about dogs who look like Richard Nixon and other ephemera, but the site has been making some significant moves into more serious fare over the past year, a wave that began with the hiring of Ben Smith from Politico. In a recent post at the Poynter Institute, writer Kelly McBride took the pulse of those efforts and also talked with Smith about the site’s ambition to produce long-form journalism. Some members of the mainstream media will no doubt scoff at these goals — but why is BuzzFeed any less likely to produce serious content than a newspaper?

                Since it hired Smith to broaden its editorial efforts, BuzzFeed has launched a British edition of the site — as well as new verticals aimed at sports and women — and introduced a business hub (which sparked some imaginative headlines) as well as made a move into longer-form content, such as a feature on the history and evolution of video games. As McBride notes, the site has also done serious investigative pieces about topics such as the failure of the new G.I. bill and the impact of Mitt Romney’s Mormonism on the election.

                BuzzFeed screenshot

                Serious and entertaining can co-exist

                When McBride asks Smith about the dichotomy between the site’s serious journalism and its “viral” entertainment content, the BuzzFeed editor says he thinks drawing that kind of artificial distinction misses the point, since it doesn’t really explain posts like the one about the most inspirational photos of 2011 — which is one of the most-read pieces in the site’s history. Was that post serious journalism or entertaining ephemera? One could argue it was both (and it should be noted that BuzzFeed has been criticized for how it aggregated those photos).

                In many ways, a realistic appraisal of BuzzFeed’s chances to become a home for “serious” journalism can only come when we stop thinking of BuzzFeed as a single media animal — the one that is hiring an “animals editor” and asks job applicants for another position to create an instruction manual for making a peanut-butter-and-jelly sandwich — and think of it as a media entity like any other. If the Huffington Post can win a Pulitzer Prize for investigative journalism, why couldn’t its offspring carve out a process for doing that as well?

                We like to think of newspapers like the New York Times or the Washington Post as monolithic bastions of “serious” journalism, but the reality is that newspapers have always been a blend of the ephemeral and the important. In most cases, it’s the entertainment column or the fashion feature on a drug-addled celebrity that pays the bills, and allows newspapers to send reporters to Afganistan or undercover to investigate a health scandal. But we ignore those aspects of what they do because we have come to see them as primarily engaged in “serious” journalism.

                BuzzFeed screenshot1

                Read some Sartre, pet a cute dog

                BuzzFeed co-founder Jonah Peretti (who was also instrumental in the creation of the Huffington Post) has said that he thinks of what the site does as similar to someone reading a serious novel at a cafe, and then stopping to notice a cute dog — in other words, appealing to the full range of human emotions. And McBride makes a good comparison when she notes that BuzzFeed is a lot like ESPN, a blend of pure entertainment and hard-hitting journalism:

                “BuzzFeed’s journalism model is a bit like ESPN’s, an organization I’m familiar with. They both produce a large volume of highly entertaining information, sprinkled with some regular journalism and some high-end stuff. BuzzReads reminds me of ESPN’s 30 for 30 film documentary series, not least because both are produced mostly by outsiders.”

                The Poynter writer also points out some of the ways that BuzzFeed needs to improve, including better editing and getting the attention of those in positions of power so that it can actually effect change. If that’s the goal, BuzzFeed may be closer than McBride thinks: a post at National Journal notes that the Republican National Committee is launching a site redesign — and they are doing their best to imitate BuzzFeed. “BuzzFeed’s eating everyone’s lunch,” a spokesman said. “They’re making people want to read and be cognizant of politics in a different way.”

                (Note: BuzzFeed president Jon Steinberg will be joining us to talk about the site’s business model at paidContent Live on April 17)

                Post and thumbnail images courtesy of Shutterstock / wellphoto

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                • Douglas Rushkoff is right — traditional media are caught between the stream and the reservoir

                  Media theorist Douglas Rushkoff has a new book out entitled “Present Shock,” which is about modern society’s obsession with what is happening now, and how that obsession is exacerbated by tools and technology such as social media. In a recent interview with the Nieman Journalism Lab, he talked about what that means for media outlets such as the New York Times, and how some of these entities are stuck between catering to what he calls “the flow” of the real-time news stream and their traditional status as gatekeepers or storehouses of knowledge.

                  Rushkoff argues that in a world of always-on, 24/7 news coverage from hundreds or even thousands of different sources, there is even more value in having a single entity like the 6 o’clock news that can pull things together and give people an overview of what happened — as opposed to the constant news crawl of something like CNN. That’s also an argument for newspapers, the author says, but some are caught between these two modes of information delivery:

                  “The Wall Street Journal has held onto a lot of what the nightly newscast provides… there’s a periodicity to what they’re doing, so they stay anchored in time. The New York Times, on the other hand, it’s so hard to even comment on them, because there are so many New York Timeses happening simultaneously. It’s schizophrenic. I don’t even know how to consume it anymore… I just feel like they haven’t distinguished between that which is fit to print and that which is part of the stream.”

                  Trapped between the stock and the flow

                  In his book, Rushkoff talks about the difference between “flowing information” — such as Twitter or Facebook or other stream-based sources — and “stored information,” of the kind that newspapers and books specialize in, where it is fixed in time and remains more or less unchanged. In a nutshell, the author says that newspapers are caught between trying to serve these two very different needs. And it’s not just those companies themselves, but news consumers as well:

                  “You just can’t use the newspaper to keep up in society any longer. And you can’t use live blogging to make sense of anything.”

                  Rushkoff isn’t the only one to notice this: for me, the tension between those two modes of information delivery — the real-time stream and the fixed-in-time reservoir — was best described by Robin Sloan, author and former Twitter staffer, in an essay about what he called “stock” and “flow.” Those terms come from the world of economics, where people are used to talking about stored value (such as cash and other monetary instruments, or physical resources) and the real-time fluctuation in the value of those things: i.e., the trading of currency or the sale of goods.

                  Sloan said at the time that the idea of stock and flow was “the master metaphor for media today,” and I think he was right. We are all caught between the stream and the reservoir — because we want to be part of the real-time flow, but we also want to capture the value that comes from taking the time to analyze that flow. Atlantic editor Alexis Madrigal wrote about this challenge in a recent piece on the life of a digital editor, but it is something we all struggle with, whether we are the New York Times or just someone trying to keep up with the news.

                  (Note: We’ll be talking with a bunch of smart media types about these and other challenges at our paidContent Live conference in New York on April 17)

                  Post and thumbnail images courtesy of Shutterstock / Fedorov Oleksiy

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