Responding to ad-blocking spectre
Last week Apple released the iOS 9 operating system – the black magic that powers its mobile devices.
While it features a bunch of geeky stuff, the interesting bit is the inclusion of ad-blocking software. This means that the 700 million-odd people who browse the web on Apple mobile devices can choose not to see ads.
Commercially this is savvy because Apple, unlike the the other web giants, doesn’t rely on advertising revenue.
What’s more, ads tend to annoy the heck out of users. So Apple has removed an active annoyance at no cost. Smart.
But the cost to its competitors is huge. Unlike Apple, most of the web giants such as Facebook and Google and most of the ‘‘free’’ platforms such as Wordpress and Tumblr rely on ad sales for their revenue. So the idea of stripping out revenue while retaining their benefit feels like robbery.
While ad-blockers have yet to take off in New Zealand, traditional news media channels are finding it tough enough.
Ten years ago the assumption was that media outlets would see a giant ‘‘X’’ in terms of traditional revenue declining while new digital revenue grew, with the two crossing over at some stage such that the new digital revenue would replace the old revenue.
The ‘‘X’’ failed to materialise for three reasons.
First, the overhead costs required to operate traditional media – be them TV newsrooms or printing presses – are significant and difficult to reverse scale. So while revenue declined many of the costs remained.
Second, the amount of free content on the web is vast – much of it tripe – but still vast. And it’s hard to compete with free.
Lastly, traditional media was slow to sell in digital advertising and struggled to get the data piece right. By contrast the global players like Google and Facebook were no slugs at this data lark.
In fact they were pretty sharp and suck a heap of capital out of the ecosystem.
We are seeing these dynamics play out in real time, with media groups focused both on reducing costs and better monetising the fickle consumptive habits of folks online.
Cost reduction is evident in the likes of current moves by New Zealand Media & Entertainment (NZME) to further reduce its ranks of journalists, sub-editors and columnists.
Sadly they are in good company, with all the major publishers in similar positions.
Speaking personally, I have friends and family among the casualties and it’s bloody tough for all concerned.
At the same time media companies are trying to work out where money can be made and it can seem like a race to the bottom.
Witness here Mediaworks’ recent launch of Scout, an infotainment website with ‘‘snackable, shareable content, especially video’’ which is apparently ‘‘internet breaking’’ in that it leverages the heck out of copromotions with Mediaworks’ core asset, TV3.
While depressing to grouchy old men like me, all Mediaworks is doing is following overseas examples.
The Huffington Post, ostensibly the first highbrow pure online newspaper, pioneered the use of ‘‘celebrity side boob’’ as a way to attract search engine traffic, and promote sharing and commenting.
British equivalents such as the Daily Mail Online took the ‘‘thigh gap’’ obsession on Twitter and started harnessing it as pure clickbait. Le Monde is another example, with its recent deal with content discovery platform Outbrain.
None of this helps the journos, subs and photographers who find themselves out of a job.
In previous times they would have simply gone to another media outlet but as the digital ‘‘X’’ has yet to appear that’s often not viable, particularly in the provinces.
One option is going to the dark side and working in public relations. Such a route is hardly new, and there are a good number of respectable roles working for decent outfits.
Mind you, many of the journos I know would rather eat a box of Persil than work in PR.
Another option is to harness the low-cost/high-reach dynamic of the web, and start up one’s own news website.
While it’s tough it’s not impossible as Bernard Hickey proved with Interest.co.nz (and more recently Hive News) and Pattrick Smellie with Businessdesk.co.nz.
For those considering it I would suggest content aggregation and a hyper local focus might be worth considering, along with a cornerstone sponsor.
Personally, I’d take a look at content marketing. No mere buzzword, content marketing has taken off in the last couple of years.
Rather than hard-sell of a brand or a product, content marketing is about creating and distributing useful content that helps a business grow.
Useful content here can range from full grown books, to journals and webinars. Two local shops that do it well are Vend and Xero.
Rather than extol the virtues of their widgets, their content marketing helps grow the business of firms that use their widgets. And at its heart is good writing.
The other thing about content marketing is that ad-blockers have zero effect on it.
Because consumers actively seek it out and share it, it’s seen as advice rather than advertising.
So with ad-blockers growing at around 117 per cent a year it seems a shrewd way to respond to a disruptive future.
Mike ‘‘MOD’’ O’Donnell is a global growth manager and professional director. His Twitter handle is @modsta and he’s known for being a grouchy old man.