Category Archives: market

Calling your web site a ‘property’ deprives it of something bigger

BBC offered another history of London documentary the other night, a sort of people’s perspective on how the character of the city has changed over time, obviously inspired by Danny Boyle’s Opening Ceremony at the Olympics.

Some of the sequences were interesting to me particularly as a foreigner – the gentrification of Islington, the anarchist squatters in Camden, the urbanization of the Docklands, etc.  - a running theme of haves vs have-nots.

It’s one of a collection of things inspiring me recently including a book called ‘The Return of the Public‘ by Dan Hind, a sort of extension to the Dewey v Lippman debates, what’s going on with n0tice, such as Sarah Hartley’s adaptation for it called Protest Near You and the dispatch-o-rama hack, and, of course, the Olympics.

I’m becoming reinvigorated and more bullish on where collective action can take us.

At a more macro level these things remind me of the need to challenge the many human constructs and institutions that are reflections of the natural desire to claim things and own them.

Why is it so difficult to embrace a more ‘share and share alike’ attitude?  This is as true for children and their toys as it is for governments and their policies.

The bigger concern for me, of course, is the future of the Internet and how media and journalism thrive and evolve there.

Despite attempts by its founders to shape the Internet so it can’t be owned and controlled, there are many who have tried to change that both intentionally and unwittingly, occasionally with considerable success.

How does this happen?

We’re all complicit.  We buy a domain. We then own it and build a web site on it. That “property” then becomes a thing we use to make money.  We fight to get people there and sell them things when they arrive.  It’s the Internet-as-retailer or Internet-as-distributor view of the world.

That’s how business on the Internet works…or is it?

While many have made that model work for them, it’s my belief that the property model is never going to be as important or meaningful or possibly as lucrative as the platform or service model over time. More specifically, I’m talking about generative media networks.

Here are a few different ways of visualizing this shift in perspective (more):

Even if it works commercially, the property model is always going to be in conflict with the Internet-as-public-utility view of the world.

Much like Britain’s privately owned public spaces issue, many worry that the Internet-as-public-utility will be ruined or, worse, taken from us over time by commercial and government interests.

Playing a zero sum game like that turns everyone and everything into a threat.  Companies can be very effective at fighting and defending their interests even if the people within those companies mean well.

I’m an optimist in this regard.  There may be a pendulum that swings between “own” and “share”, and there are always going to be fights to secure public spaces.  But you can’t put the Internet genie back in the bottle.  And even if you could it would appear somewhere else in another form just as quickly…in some ways it already has.

The smart money, in my mind, is where many interests are joined up regardless of their individual goals, embracing the existence of each other in order to benefit from each other’s successes.

The answer is about cooperation, co-dependency, mutualisation, openness, etc.

We think about this a lot at the Guardian. I recently wrote about how it applies to the recent Twitter issues here. And this presentation by Chris Thorpe below from back in 2009 on how to apply it to the news business is wonderful:

Of course, Alan Rusbridger’s description of a mutualised newspaper in this video is still one of the strongest visions I’ve heard for a collaborative approach to media.

The possibility of collective action at such an incredible scale is what makes the Internet so great.  If we can focus on making collective activities more fruitful for everyone then our problems will become less about haves and have-nots and more about ensuring that everyone participates.

That won’t be an easy thing to tackle, but it would be a great problem to have.

Creating leverage at the data layer

There’s a reason that the world fully embraced HTTP but not Gopher or Telnet or even FTP. That’s because the power of the Internet is best expressed through the concept of a network, lots of interlinked pieces that make up something bigger rather than tunnels and holes that end in a destination.

The World Wide Web captured people’s imaginations, and then everything changed.

I was reminded of this while reading a recent interview with Tim Berners-Lee (via TechCrunch). He talked a bit about the power of linking data:

“Web 2.0 is a stovepipe system. It’s a set of stovepipes where each site has got its data and it’s not sharing it. What people are sometimes calling a Web 3.0 vision where you’ve got lots of different data out there on the Web and you’ve got lots of different applications, but they’re independent. A given application can use different data. An application can run on a desktop or in my browser, it’s my agent. It can access all the data, which I can use and everything’s much more seamless and much more powerful because you get this integration. The same application has access to data from all over the place…

Data is different from documents. When you write a document, if you write a blog, you write a poem, it is the power of the spoken word. And even if the website adds a lot of decoration, the really important thing is the spoken words. And it is one brain to another through these words.”

Data is what matters. It’s a point of interest in a larger context. It’s a vector and a launchpad to other paths. It’s the vehicle for leverage for a business on the Internet.

What’s the business strategy at the data layer?

I have mixed views on where the value is on social networks and the apps therein, but they are all showing where the opportunity is for services that have actually useful data. Social networks are a good user interface for distributed data, much like web browsers became a good interface for distributed documents.

But it’s not the data consumption experience that drives value, in my mind.

Value on the Internet is being created in the way data is shared and linked to more data. That value comes as a result of the simplicity and ease of access, in the completeness and timeliness, and by the readability of that data.

It’s not about posting data to a domain and figuring out how to get people there to consume it. It’s about being the best data source or the best data aggregator no matter how people make use of it in the end.

Where’s the money?

Like most Internet service models, there’s always the practice of giving away the good stuff for free and then upselling paid services or piggybacking revenue-generating services on the distribution of the free stuff. Chris Anderson’s Wired article on the future of business presents the case well:

“The most common of the economies built around free is the three-party system. Here a third party pays to participate in a market created by a free exchange between the first two parties…what the Web represents is the extension of the media business model to industries of all sorts. This is not simply the notion that advertising will pay for everything. There are dozens of ways that media companies make money around free content, from selling information about consumers to brand licensing, “value-added” subscriptions, and direct ecommerce. Now an entire ecosystem of Web companies is growing up around the same set of models.”

Yet these markets and technologies are still in very early stages. There’s lots of room for someone to create an open advertising marketplace for information, a marketplace where access to data can be obtained in exchange for ad inventory, for example.

Data providers and aggregators have a huge opportunity in this world if they can become authoritative or essential for some type of useful information. With that leverage they could have the social networks, behavioral data services and ad networks all competing to piggyback on their data out across the Internet to all the sites using or contributing to that data.

Regardless of the specific revenue method, the businesses that become a dependency in the Web of data of the future will also find untethered growth opportunities. The cost of that type of business is one of scale, a much more interesting place to be than one that must fight for attention.

I’ve never really liked the “walled garden” metaphor and its negative implications. I much prefer to think in terms of designing for growth.

Frank Lloyd Wright designed buildings that were engaged with the environments in which they lived. Similarly, the best services on the World Wide Web are those that contribute to the whole rather than compete with it, ones that leverage the strengths in the network rather than operate in isolation. Their existence makes the Web better as a whole.

Photo: happy via

Ad networks vs ad exchanges

I spent yesterday at the Right Media Open event in Half Moon Bay at the Ritz Carlton Hotel.

Right Media assembled an impressive list of executives and innovators including John Battelle of Federated Media, David Rosenblatt of DoubleClick, Scott Howe of Microsoft, entrepreneur Steve Jenkins, Jonathan Shapiro of MediaWhiz, Ellen Siminoff of Efficient Frontiers, and Yahoo!’s own Bill Wise and the Right Media team including Pat McCarthy to name a few.

It was an intimate gathering of maybe 120 people.

Much of the dialog at the event revolved around ad exchange market dynamics and how ad networks differ from exchanges. DoubleClick’s Roseblatt described the 2 as analagous to stock exchanges and hedge funds…there are a few large exchanges where everyone can participate and then there are many specialized networks that serve a particular market or customer segment. That seemed to resonate with people.

The day opened with a very candid dialog between Jerry Yang and IAB President Randall Rothenberg where Jerry talked about his approach to refocusing the company and his experiences at Yahoo! to date.

Battelle’s panel later in the afternoon was very engaging, as well. The respective leaders of the ad technology divisions at Yahoo! (Mike Walrath of Right Media), Miscrosoft (Scott Howe of Drivepm and Atlas) and Google (David Rosenblatt of DoubleClick) shared the stage and took questions from John who, as usual, didn’t hold back.

The panelists seemed to have similar approaches to the exchange market, though it seems clear that Right Media has a more mature approach, ironically due in large part to the company’s youth. Microsoft was touting its technology “arsenal”. And DoubleClick wasn’t afraid to admit that they were still testing the waters.

I also learned about an interesting market of middlemen that I didn’t know existed. For example, I spoke with a guy from a company called exeLate that serves as a user behavior data provider between a publisher and an exchange.

There were also ad services providers like Text Link Ads and publishers like Jim Mansfield’s PhoneZoo all discussing the tricky aspects of managing the mixture of inventory, rates and yield, relationships with ad networks, and the advantages of using exchanges.

I’ve been mostly out of touch with the ad technology world for too long.

Our advanced advertising technology experiments at InfoWorld such as behavioral targeting with Tacoda, O & O contextual targeting services like CheckM8, our own RSS advertising, lead generation and rich media experiences were under development about 3 years ago now.

This event was a great way to reacquaint myself with what’s going on out in the market starting at the top from the strategic business perspective. I knew ad exchanges were going to be hot when I learned about Right Media a year ago, but I’m even more bullish on the concept now.