Friday, February 12, 2009 2:22 PM EST

The Ever Changing Face of Social Media

by Oliver McIntyre

This recession looks uglier by the day; all I see is one bad news story after another. Every day I’m asked the same question, “where should I focus my ad dollars to get the best bang for my buck?”

This recession is the first really bad news that has occurred in the social media era. But is it bad? For me, social media is immediate, more customizable, and in many cases more honest and real than other forms of media. The conferences and symposiums of the 00’s are going to be replaced by other forms of digital information exchange that will dominate the bummer 10’s. I’m still amazed that many still haven’t invested and focused on the new mass media and continue to debate its relevance. Over the past year, two meaningful verticals have emerged: video and real time search. I want to focus on video within this post.

YouTube.com is now the second largest search site online, and generates domestically close to 3BN searches per month. Putting that into perspective, it’s a bigger search destination than Yahoo. It was an inspired purchase for Google although I was blown away at the initial cost. Google understood that video search was both hard and different and that owning the asset would give them both a media destination (browse, watch, share) and a search destination (find, watch, and share). Video search is very different because it alters the line or distinction between search, browse and navigation.

In the current landscape of online video, YouTube is and will remain the monster as it has more than 30% of all videos. Professional content is becoming more available (e.g., Hulu); the television media is converging with the Internet (e.g., Joost); long-tail video blogs are being created at a rapid rate; communities are forming around topics/interests (e.g., Break.com). Similar to television (where choices burgeoned from just the networks in the 1970s), music (where choices exploded from radio to MP3s, to satellite radio, to Internet radio), and even the major online portals (in which audiences have splintered to social networks), Video content is exploding and this eruption is driven by cheaper bandwidth costs, cheaper Web cams and abundant video cell phones, and monetization capabilities that can now reward content creators. Even traditional media have awakened to the inevitable growth with acquisitions (CBS/WallStrip), content availability (Hulu), and advertiser partnerships (the “Make Your Own Doritos” commercial).

We have four distinct groups:

Commissioned Content Sites

Content publishers complement their existing media offerings. Major players like CNN.com NYT.com as well as TV networks such as NBC.com and Fox.com. Also in this category is the content aggregation site Hulu, which offers content from its partners, including AOL, Comcast, MSN, MySpace, and Yahoo.

User-Generated Content Video Sites

Professionally created content sites are on the rise; UGC video has contributed to the Internet video phenomenon in a major way. Key players YouTube, Veoh, Metacafe, and Break.

Video Syndication/Advertising/Publishing

Given the explosion of online video, we now have companies that specialize in syndicating, publishing, and monetizing video content. The major players in this category include Broadband Enterprises, Tremor Media, VideoEgg, and Maven Networks, which was acquired by Yahoo.

Video Search

Just as Internet users rely on search engines to navigate through the reams of information, the online video world also demands video search engines to index the massive amount of video content. We have five major players, Google, AOL video search engines, Blinkx, Gofish, and Singingfish.

In December 2007, domestic video streamers amounted to 141 million, representing more than 75% of total U.S. Internet users. YouTube dominated with 78 million unique viewers in the month, up 60% since the beginning of the year. A more defining statistic to consider is that more than 40% of total U.S. Internet users streamed videos on YouTube in December 2007, underlying or demonstrating the impact that YouTube, or Internet video in general, has on the daily lifestyle of Americans. MySpace also has attracted massive viewer traffic, at 41 million in December 2007, but we point out that growth is moderate at a mere16% year to date. On the other hand, Facebook, grew more than five times since the start of the year. The rapid growth for me is the creation and adoption of its video application on the site.

Demographics:
Demographic information for YouTube (as a representative of UGC sites) and Time Warner Networks (as a representative of professional content sites).

YouTube, audiences under the age of 25 stream about 27% of total videos on the site, higher than Time Warner’s 19%.

The more attractive demographic group (25-54), 63% of YouTube videos were viewed by this group, on par with the level for Time Warner. (55+) contributes only 10% of total video streams, less than Time Warner at 16%.

What is an Agency, a Vendor, or a Partner?

The debate rages on. I believe the future is about strategic collaboration, agency people with the cross-dimensional expertise, visionaries who can work with the client and develop digital products that foster and build relationships. Today’s user, irrespective of the demographic, must be engaged. Personalization and customization is the future and commissioned content has replaced the banner. The big idea is no longer a big idea unless it can be validated and is focused on business goals (i.e. sales growth, customer relationships,) rather than 'ad' goals of awareness levels, share of voice, or creative likes and dislikes.

The future is Social Networks.

Comments (11 total) | Add Comment | Permalink

2009-03-11 04:36:40
from: David Cooper - cooper@itsportsnet.com

Things are going to get more chaotic before it becomes clear what the future IS. Social networks maybe more honest and real than other forms of media... but they are neither honest nor real. Do not get me wrong, I agree that some of the stuff going on today is incredible and we are at the beginning of some significant changes. However, I do not see a paradigm shift here. I just some cool tools that people are using to interact in a new... but not necessarily a better way. The Future is a paradigm shift where I will have gotten rid of my smart phone, ipod, cable, internet, itunes, my gazillion online accounts, my multiple electronic address books, my laptops, digital cameras, calendars and have a truly integrated way of communicating and interacting where the lines between real and digital do not exist anymore. ... although this doesn't help answer the question about where I get the best bang for my ad money : )
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2009-03-06 09:07:28
from: deborah@americandiversityreport.com

Hi Oliver, Thank you for documenting these major cultural shifts. I particularly appreciate your differentiation between big ideas focused on a business goal rather than awareness levels. I'd like to hear more about the implications of this change of direction and I'm looking forward to your upcoming blogs.
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2009-02-27 07:50:39
from: Brendan Cullen, brendan@surveyguru.ie

Very well written Oliver - provocative indeed. One angle I'm interested in though is the bottom line for some of these companies. Are the Facebooks of the world turning a profit ? And are Google getting a financial return on investment yet from YouTube ? Brendan
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2009-02-27 07:50:42
from:

Oliver, great article, sometimes even when you know you are right it helps when someone with your experience confirms it! I have sent the link to your blog to my colleagues as I think it will help our focus and motivation towards our goal of creating a great social network! Thanks for the inspiration. I agree with your final paragraph, for relationships to work for all parties the partnership approach is by far the most satisfying and promises greater rewards in the long run!
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2009-02-21 13:52:19
from: markh@egoeast.com

Great blog Oliver. When you consider that the majority of Internet search and traffic today is viewing text content, I think we're really just at the beginning of an Internet that will one day be dominated by Video content. One of the most interesting categories is how-to video content pioneered by sites like ExpertVillage and VideoJug. Soon pretty much anything you can imagine doing, or that you may need info about, you will be able to watch via video-based instruction, etc. And as we get past the novelty of video on the Internet, increasingly we will come to depend on it.
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2009-02-19 10:26:55
from: info@creativestarlearning.co.uk

Hello Oliver Thanks for pointing me to your blog. I really like the overall look of it - it's fresh and professional and that helps add credibility in a quiet way - your writing naturally speaks oodles and it's clear you know your stuff. For a non-marketer / advertiser / business-world wifie who's metamorphosed from the public sector into the bright blinking business lights, I was surprised and relieved to find that your content didn't alienate me. It may be worth chunking your blog into smaller sections and offering them in bite-sized pieces. Perhaps it's my goldfish attention span but I need quick read chunks on blogs. Out of interest, who do you think will read your blog? Is it for your own personal satisfaction or are you going to be sharing it with your customers? This is more a rhetorical question as it could be both. I ended up blogging as a way of getting stuff out of my mind and on to paper, but decided share my thoughts via a blog because I like the simplicity of the formats and the idea I could access it from anywhere I happened to be. KEEP BLOGGING and best wishes Juliet
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2009-02-19 08:04:44
from: Pamela Hint pamelahint@yahoo.com

I've said it before, and I'll say it again. You're inspirational Oliver! Your POV on where the digital world and internet is heading is truly innovative and makes so much sense. This is great work, I look forward to reading all your future articles.
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2009-02-17 13:51:38
from: Clive Digby-Jones, Ravenscroft international - cdigby-jones@ravenscroft.com

Hi Oliver... In the Chart - you talk about 25-54 demographics but then highlight 35-54 only. Clearly the latter is a big chunk. I idly wondered how computer/technically literate each of the age bands is... this is for my information. At 61 I am pretty literate, but my wife at 66 isn't and won't touch a computer, so I guess that the % watching videos falls with age and that there are different male/female % figures too? Overall, the article was clear, articulate, concise and left me wanting more and thinking that you know your stuff - it also made me want my own blog and to ask for the link to the host site. It also reminded me that a lot of my work was facilitating groups of marketeers, clients and others to think through strategy, etc. It allowed the expert in the room to be part of the group rather than also needing to lead the group. If you ever need a sidekick, based out of Florida and Massachusetts and with bases in NJ (West Orange), VA (Arlington) let me know! Clive
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2009-02-17 10:29:43
from: Sharifah Hardie shardie@sharifahhardie.com

Thank you for sharing your information with us. I believe that you have some very strong points. I also believe that the future is Social Networks and the future is now. In order for any of us to get through this economy we have to "network" or learn to work together to help the greater good! Awesome Points, Sharifah Hardie
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2009-02-15 14:59:09
from: penelope@PROnLineTools.com

Just to prove I was here :-) - great blog, very interesting data. It's great to see an agency guy embrace the internet for advertising as only people with your views and vigour will keep or grow their businesses. Traditional marketing is dead and people are saturated with messages. Marketers, especially advertising bods, need to get with the digital program or die. I recently produced a marketing plan for a client with a VERY niche book product. Gorgeously presented but limited true market. I included in the plan some great internet options for viral marketing such as podcasts on her website with her reading excerpts, e-news and links to other authors, gaining internet reviews of the book, joining Ecademy, joining Expert Sources.co.uk which goes to thousands of media, internet techniques to develop herself as an expert in her field (which she is), market segmentation, positioning, etc. She rejected ALL of it except sending frickin media releases to local media. And she wonders why she's not selling books! Grrrrrrrr - I also went to a lunch and the guest speaker was the MD Aust/NZ for Yahoo and he was REALLY interesting. He now works for a company that inserts advertising into television programs that are played over the internet - blue highway I think it's called. So great stuff, Oliver great first blog - I look forward to more. Well done. Cheers, Penelope (and welcome to Insanely Clever Marketing) :-)
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2009-02-15 14:56:44
from: Rachel Henke

Hi Oliver Welcome to Bloggerville! I'd say that's a pretty amazing start. Well done. Blog looks great. Challendge is to keep on blogging! Thanks Rachel
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