Monday, April 30, 2007

Interview with Andrew Pascoe

I have been reading Andrew Pascoe's Blog for quite sometime now. I admire his discipline to be able to blog consistently offering a daily mash-up up digital news reporting.

Just about every other Aussies that I know in the digital space reads his blog at least once a week.
I emailed him last week for an interview and he kindly obliged, engaging on a keen discussion on the web and how Australian companies embracing Web 2.0.
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BAM: How long have you been blogging for?
AP: Since November 2004 - I started when I was still in Brisbane because I couldn't find any Australian digital media regular sources so figured I may as well start my own.
It's funny looking back on my very first posts, how archaic some of them seem now.

BAM: How did you get started in the digital industry?
AP: Like a lot of people in media agencies, I just stumbled across 'media' - my path was via work experience way back in high school. I'd always been around computers, helped by my older brother being in IT, so media & computers intersected at digital media.

I'd shown ability in the area, so the media agency in Brisbane I started at was happy to make me the online media person.

BAM: As the Interactive Media Manager at Sputnik, what does your role entail?
AP: Two main facets: The first is overseeing all the 'typical' media functions (being a sounding board for the media team when developing media plans, media negotiations, bitching & moaning about lack of consistency between publisher specs).

Second, is helping seed a greater understanding across the whole agency - we're full service so have creative, tech dev, and account management - of digital media from the penetration/consumption perspective.

A large part of that second facet can sometimes be playing devil's advocate also - sexy new technologies and sites aren't worth pursuing if they're not being used by the appropriate audience.

BAM: Sometimes Sexy New Technologies need to be experimented with, after all this whole Banner thing once was Sexy New Technology. So do you tell clients not to consider SNT?
AP: Definitely agree, and because of that, we most certainly tell clients to consider SNT. (I like the acronym - although it needs a vowel - maybe SNeT?) Where the SNeT fits the desired target and objective, we recommend it - either as a core or supplementary activity depending on the campaign (and yeah, its usually supplementary to allow for testing).

Where the SNeT doesn't necessarily fit the target or objective, we might make the client aware of it to keep them informed but recommend not using it.

Regardless of clients usage, we try to test internally, or at the least become familiar & comfortable with them, all the SNeT.

BAM: What is a hot idea with your clients at the moment?
AP:
It hasn't been necessarily raised by clients, but an opportunity that is going begging at the moment is selling Australian eyeballs of blog ad networks.

Companies like Federated Media and BlogAds in the US present a nice opportunity for an Australian sales house to start selling the blogs in their networks to Australian readers.

Twitter is the latest new technology/fad we are seeing having some appealing campaign applications, when mashed up with mapping (think any verticals where location is either essential or an enhancer).

Also, few clients were keen to discuss affiliate marketing again (both for and against) after seeing the trade press coverage of the recent RSVP/Commission Monster activity.

BAM: Are you able to share the details of the Twitter/Mashed example?
AP: It's a bit too early at this stage I'm afraid. There are some products/services though that are more broadly about location and places, and activity at places, than something generic like a store locators. I'll let you know when its live though : )

BAM: How receptive are Australian Companies to new ideas?
AP: This combined with my response about what's coming up in the next 6 months is going to make me sound like one big negative nellie. Seth Godin sums it pretty well: there's two reasons people say no to your idea - "it's been done before", or "it's never been done before."

When we are talking about new media ideas, the translation is that no one ever got fired for buying a certain number of (TV) TARPs, or buying the (outdoor) supersite that's on the managing director's route to work.

This points to something though: as a digital industry, we need to be selling our story more thoroughly, and educating far, far more thoroughly.

BAM: Most Australians do things, once they have been proven to work, however at that stage everybody is jumping on the bandwagon, diluting the effectiveness. Additionally, it's hard to educate if clients if they are not willing to experiment a little, create new frontiers. How do you manage that paradox?
AP: I think the answer to that lies in on two fronts:

The first is developing the skill to locate from overseas examples in the right verticals or using the same technologies etc and pulling out the parts that can be applied to this market.

The second is finding the types of clients here that realise if they do not test things now they will struggle 3,4,5 years down the track when the current traditional media solutions are even more fruitless (the sorts of marketers I'm talking about here are what Max Kalehoff calls "the happy loser" - from those organisations that are building in higher levels of unpredictability and periodic loss into their models)

BAM: Where do you see the Australian industry heading in the next 6 months?
AP: 6 months is a pretty short space of time - one that is very easy to see stasis. Online spend is growing by default at such a rate that for many parties - from both/all sides of the equation - there is no need to do much different from right now - a rising tide floats all boats as the saying goes.

I'd in fact settle for all Aust publishers to finally be using the proper names of the IAB standard ad sizes in their communication, sometimes in the next 6 months. Seems we can only expect baby steps in this, and similar, regards.

BAM: A while back in a blog entry you stated that no Digital firms should hire an individual that does not blog or have a del.icio.us account, why is that?
AP: Haha - yes, I recall that post. Looking back on it perhaps I was being a little too literal. If you think about offline media (& creative) agencies everyone there has grown up with all of the media they are planning and buying and creating for and talking about.

This also applies to the standard online banner media now. Anything beyond that though is all the newest of the new digital media, so planners simply can't have spent 10 or 15 or 30 years with these mediums.

If they can't have picked up on the characteristics of these new mediums by years of general exposure as with offline/traditional mediums, then to begin to understand their strengths and weaknesses, you have to be absorbed by it, which includes having practical hands-on experience.

The best example of this is looking at the tone of an approach to a blogger by a non-blogger, but the same holds true for other activities such as the metaverses of Second Life, or Twitter.

END

Thursday, April 26, 2007

The Commodotization of Democratisation - The Digital Tsunami

Today at the Australian Technology Park's World IP Day I had a chat to Beata Kade, the head of a company called The Art of Multimedia.

We where chatting about the work I do, and I mentioned that I can produce vodcast and webcasts for as little as 1k (30 minute shoot), she was concerned that it was so cheap and that it devalues what companies like her can charge.

She pleaded that I shouldn't charge so cheap as it conditions clients to pay as little as possible. The net effect on her firm is that clients want low budget work and she can't deliver as she has a cost base she needs to cover.

I beg to differ, for starters there will always be a market for High End Blockbuster productions, however a small market - that's work for corporate DVD's and other boring stuff.

I work with firms that want to build a large community by casting events via the Internet and vodcasts, be it for the Youth or other markets - they have small budgets and don't see any value in paying a minimum of 10k for every cast.

No matter what I do or what Beata's company does, it will not stop or slow the Commodotization of partically everything; be it video, photography, graphic art or web design, hosting and other related services.

Google's biggest effect on the industry has been the Commodotization of web advertising.

The effect of digital within the video production industry, has been that it has commdotized just about everything; ranging from Cameras, lighting, media (Tapes, Hard Drives, etc), editing software and video hosting (YouTube, etc) and other distribution methods (RSS feeds, iTunes, etc) - including production!

I think that's a good thing.

Companies refusing to service a sector of the market, i.e. the small budget in this example, will not stop or slow this trend - regardless of their cost structure.

Before digital, there was no such thing as Vodcasting or Webcasting. However now days, it is a very profitable way for all firms to use the web to build a community with out having a huge budget.

It's called Democratisation of Digital Services.

If a Firm's cost structure is not geared to leverage the Digital Tsunami, they will miss a huge opportunity.

To leverage this new order, Firms need to do either:
1. Adjust their cost structure
2. Adjust their strategy
3. Wither away

Billy

Wednesday, April 18, 2007

New Worlds - Avatar Marketing Strategy

Last night (Tuesday, 17th April 2007) on SBS at 8:30 there was an excellent documentary on the phenomena of virtual worlds, such as Second Life, Entropia Universe and World of Warcraft, among others.

The doco focused on all the new enterprises that virtual worlds have spawned - Beyond the game developers. Enterprises such as Gold trading, Levelling and buying Virtual Real Estate, all undertaken with real cash.

The SMH has compiled a detailed brief review. If you missed it, I encourage you try to source it.

Some people may wonder what the fuss is all about, but consider this; by 2010 there will be over 12 million active Avatars!

At the moment there are about 6 million Avatars, which makes you think; if you are a Pepsi, Gillette, Absolut, Pizza Hut, etc, that perhaps you need to be developing an Avatar Marketing Strategy.

Coca-Cola thinks so.

For a list of the Virtual Worlds visit: http://www.virtualworldsreview.com/