Showing posts with label net behaviour. Show all posts
Showing posts with label net behaviour. Show all posts

Wednesday, 30 September 2009

Analytophilia, Analytophobia and Social Media Weather Forecasting


I was introduced to a new word today. Analytophilia. I love it. Analytophilia is the addiction to (or love of) checking how connected you are in social media: - how many tweets, DMs, facebook contacts, Linkedin connections and comments on your status, or others. This is a world where agoraphobics feel safe, but can also feel really social, without leaving their desk or iPhone (and entering the physical agora or marketplace).

I’d add another term. Analytophobia. This is the fear that your analytics would reveal, with cruel accuracy, that you’re a ‘nobody’, - not even a ‘somebody’ in the digital sphere. This would lead the sufferer to fear the login, like pressing the answerphone button and hearing ‘You have NO new messages’ too often. It’s not good for the old ego Sir. Time to join an online role-play game (MMORPG), like World of Warcraft. They’ll fix the fragile ego in a jiffy because anyone will play with anyone, and they do so in their millions.

Analytophilia and Analytophobia are, in fact, two sides of the same digitally mediated psychological coin, like pride and shame. Welcome to the Sociology of Social Media Emotion.

There are important implications for businesses which need to figure online, and have figures to prove it, in the growing cloud of online social buzz. There are loads of ways of doing it... if you know how and have the time to do the reporting and tracking, and sifting and monitoring. Trying to do it without the right tools to hand and operatives to use them, is like buying a pile of hammers and saws and nails and trying to build a house. You might actually succeed in building a hut of sorts, which will keep the rain out for a while. But you’ll never build a house or a good one at least. And think of the time, and injuries; and it might fall down in a storm! That’s when you call the likes of my good self (shameless plug). Yes we can! (Bob the builder, not Obama)

Prediction/observation: The net, and all communication is, and will be, driven by data, and those who can handle data and present it in a beautiful, simple, meaningful and actionable fashion... will always be busy.

It’s strange to admit, but I love numbers and the challenge of becoming a social media weather forecaster because weather is interesting, and the language of weather is taking over the language of surfing and sea that haunted the web since its nascent beginnings (from surfing and waves to clouds etc). And did you know that the biggest computers were built, partially, to handle the billions of computations necessary to predict the weather? Eniac for example. That chaos theory arose out of the big shift in weather prediction shown because of a few decimal points being omitted? Physics, maths and the computing that facilitated them were largely driven by the simple need to know what the weather is likely to do next. Well, now is the time for the Social Weather and forecasting, and the computing is being done already, but not by one machine, by the cloud of users and their computers. Businesses and people need to know the temperature outside, before they leave the building.

The driving equation and goal for social media: -

(messages ↑, efficiency↑, news/information/gossip ↑,freedom/mobility ↑, work/life-balance ↑) = (time spent↓)

The online clouds, (word of mouth/public opinion) are moved by the seas (offline people whose opinions (temperature) move much slower, but they hold their opinions for much longer). The net is a much more promiscuous, impatient and ephemeral space than the real world. Always has been. Within the clouds there can be hurricanes (like when MJ died), smaller storms, (#Lisbon2), and little squalls (#Luas). The online activity, in a storm, can strike offline public opinion like a bolt of lightning too, when the fact of the online news being so busy has a huge impact on the news of traditional media, and ALL public opinion (reflexively). The weather is also driven by the medium (the air, or platform (PC/iPhone/Facebook/twitter), and the sun (the Internet connection).

OK. The analogy is getting tired. But, it might still be useful.

In short! What can be done with this? Well, we can:
  • Monitor social media: Any topic, issue, group, industry category, sector... whatever. This includes forums, blogs, YouTube, twitter and news sites. We can graph, present, analyse and output for you and yours
  • Put scale on the storm: how big, how busy, how powerful, who’s involved
  • Forecast: where it’s likely to go next. How big it’s likely to get
  • Take part: setting up a social media portal/outlet for your business, and maintaining it
  • Alert you: When the unhappy or unruly come knocking at the door of the office.
  • Give you an Umbrella: Protecting you with online PR advice and provision

So, don’t be afraid of the Social Media weather. Let us give you the forecast and provide you with an umbrella!

Friday, 14 November 2008

Moore Street on the Net. The Trader Segment of Netizen will Grow in Importance

A recent segmentation I ran on Internet behaviour showed several groups.

Dolittles (6%): This group don’t do much and could be termed low intensity Internet users. They report that they all use the Internet for email and chat and they will use all of the other Internet categories, but much less often than the other groups.

Media Consumers (31%): These are the consumers of net content in all its forms, and from all form of traditional media online (RTE, Irish Times, Sky etc), so I’ve called them the media net. Yes, but they’re net surfers with a purpose rather than aimless geeks enjoying the beauty of things digital. This group will go to read news of all sorts. They’ll be financially savvy and are well educated. They also have good jobs and incomes too. These use the net as an information resource and a career enhancing tool to aid decision making and economic communication.

Networkers (8%): Perhaps once considered the ‘sad’, depressive net addicts this group is now recognized as a growing segment of net activity, and they’re using the net tool to help extend their overt social nature... (or over compensated social phobia) and they love it.

These are the group who are into chatting and networking. They like to be linked and bring on the buzz of chit chat and juicy gossip. Yes, more girls in this group, but only just. They like chat, user generated content, bulletin boards and dating. These are the net socialites who get their fix of friendships and talk online.

I think this group are especially important as the trend towards a more digitally mediated social existence and staying in contact with ‘everyone you ever knew’ to feel part of the community is a strong one. It may just be a new stage in reaching maturity, or feed into broader psychological needs, but its there and will only become more prevalent in society and persistent in nature.

At an extreme, it gets silly. Is someone with 14 contacts less happy or socially or economically adept than someone with 100? Or 500? Doubt it, and studies would indicate that 50 is the max number of relationships people can handle at all. (For Lions its 30). Business contacts may be different of course and it will be quality not quantity that is important there too. Get this for a wheeze. There’s a cheat on Bebo so you can pretend you have 100s of friends. (Hope there’s one for LinkedIn L)

Mappers, Restaurants and Cars (42%): Then, there are those who use the net for restaurants, car trading and maps.

They might use email, but the net hasn’t impacted on this group socially or economically at all really. These tend to be older men who perhaps don’t have the time or the need to be chatting to their peers who aren’t that net savvy anyway. The net makes sense to them when they can print off a map or a timetable, but the rest of the stuff? Well, really! It’s more for the kids isn’t it, though he doesn’t understand what exactly it is that they do when they do it. But, he’s (as it typically a he) is proud of his net connectedness nevertheless. This group you won’t see on the web that much really except for newspapers, Google and main stream media.

Traders (13%): This is the group that are the main focus of this post. These use the Internet like an ATM... a ticketing machine for flights, banking and shopping. Functional stuff. 13% of Internet users are in this distinct group. Doing things without having to queue for less money, or when they need to upgrade their phone.

But, within this group are those that use eBay and Classifieds. The tech savvy ‘trotter’s independent traders’ of the great web boot sale in the ether. This is one of the most important sectors to Ireland Internet economy. The invisible spivs, the attic hunter gatherers, the ebayerati.

What exemplifies this group from the others is their need to make money from the net rather than spend time on it or buy things on it, though they will be include those who do. They ‘make’ money either in savings on goods purchased in other markets, or by selling and trading. And, I think in the current economic climate, this group is set to grow...

eBay consider people to be basically honest, and they’ve been proven right. Yes, there are always some people who’ll try to sell fake goods, but we don’t blame the platform, but rather the seller, and that’s the way it should be.

For example, I’ve always known that if I buy a €5 watch when I’m on holiday in Tunisia and it turns out not to be a real Rolex it’s totally my fault for being such a mean muppet – thinking I can take the piss in a third world country and even haggling him down from €20 and thinking I was clever. God, I so deserved it. (‘Wanna buy Rolex, Tag, Swatch? Reel Gold! Verry good price for you my friend. You Ireesh? My Mother she ees Ireesh. I write letter to her in Ireesh.’ And I thought I had the upper hand. what was I thinking?)

No, there’s is no such thing as a free lunch. And, the same applies online. But, on the other hand I also know that there are good carpets to be bought in Turkey, or art, or whatever, so I’ll have few qualms about taking that risk. eBay is a bit like that for me. Great bargains for the discerning purchaser. It’s just like the real world. There are millions of things to buy online, if you look and it doesn’t take long with a little practice. eBay should be a primary port of call before you shell out full whack for new goods with all the VAT attached. Very often, the only difference between an eBay purchase and a retail one is the box and Styrofoam it’s packed in, and even that can be an inconvenience to get rid of. Then there are tickets, brand new goods, antiques and all sorts of stuff you will only be able to buy online - if you look that is.

There’s a new breed of Irish seller to join the street sellers of Moore’s Street and Camden Street, and they’re waiting with their wares to sell to the highest bidder on the net.

This group don’t look like traders though. They are homemakers, women with kids, men who look for car parts online, fixers, menders and make doers. Oh, and a few petty crooks of course. These are the people who keep the family budget ticking over and make sure the car gets the kids to school. These are the head down and work hard bunch and these are the group I think are kind of recession proof, philosophically speaking anyway. It’ll be hard alright but they’ll manage, and if they don’t remember a recession themselves, their parents and grandparents won’t waste any time in reminding them.

And finally, I think we should all take a leaf out of the philosophy of the net trader. For the giant Irish middle class there’s no shame in saving money in Lidl any more is there. It’s a competition for how much you’ve saved, rather than being concerned about how much you have to spend. And to sell and trade things you don’t have to have a stall on the main street and the voice of 10,000 Woodbines - it can be done from your front room. I think it’ll catch on.

And Finally...

And finally, though these groups add up to 100% they are not ‘discrete’ groups. They cross over each other and almost all use email and Google etc to some extent (there are those that don’t believe it or not). So, there will always be exceptions, that is, groups that don't fit into these bands, but these groups represent a statistically valid generality with whatever insight that can provide. If you know a find a different group not described above they may reside within one of mine, or the Dolittles, or they are just new, or strange. Or indeed, they maybe have been so niche the weren't picked up by my sample. Gamers, for example, are omitted, and they are becoming steadily more important. But, they fall between stools in my breakdown... somewhere between social networks and chatters including behaviours of both. Why do they fall between stools? Well, because the stats told me they did. And, what does that mean? Well, if you think about it gaming is a social communicative practice after all, but there is no typical ‘gamer’ behaviour online on sites other than gaming sites that differentiates the gamer, as a type of Internet user, from the others. In other words, gamers are normal, just like the rest of us or there’s a gamer in all of us. Gamers don't use the web any differently to the rest of us... at least not yet with any statistical significance anyway. That will probably change in the coming years.

But tell me what you think? Do you know some groups that need exploration? Is there more to this than meets my eye? Let me know. I always listening, very interested and keen to learn.

And in the meantime why not get an eBay account and check it out. You know you want to and you could maybe save a bundle! J

Friday, 3 October 2008

Economic Downturn Impacts on Irish Online

Purchases of Goods & Services - New Report
Drop in quantities of products and services bought online since 2007

Online research for products down by as much as 10% for some goods

Fall in online purchasing activity linked to decline in economic activity

Dublin, IRELAND - September 22nd 2008: Irish shoppers are spending less money buying good and services online and are spending less time on the Internet doing research on their favourite products, according to a landmark report that has just been published by Dublin-based digital communications consultancy, Net Behaviour.

The Net Behaviour Report - the most extensive research that has been carried out on Irish internet usage - contains the Net Behaviour (NB) Consumer Index, which looks at the propensity of Irish people to research and purchase goods and services online.... read more

Thursday, 6 March 2008

Broadband by Any Other Name Would Work as Fast

I was intrigued by recent figures from Comreg. They showed many impressive percentages, but in my opinion give a very unclear picture of Internet access and use in Ireland. The problems stem from three sources: − the definition of broadband, the obsession with ‘at home’ connections, and the research method (door-to-door).

These three issues combined lead me to the conclusion that we are significantly underestimating broadband use in Ireland and Internet use in general.
The report starts by stating that 54% have access to the Internet as do 48% of households.

Out of those who access the Internet, the percentage who connected with a home broadband connection is 52% (eircom broadband). 9% connect through wireless broadband, 9% with WiFi, and 6% with ISDN. 3% connect with cable (NTL) and 1% with a mobile broadband connection (3G).

The problem is that, with the exception of ISDN, all of the connections above are broadband, but by another name. (ISDN is midband). The term ‘broadband’ refers to the speed of the connection, (anything over 512kbps), regardless of the mode of connection. It doesn’t matter if the connection giving that speed is wireless, mobile, via a cable, Wifi or 3G. If they invent some new connection type next year, and that delivers data at more than 512kbps… that’ll be broadband too. Based on these figures, and with this more accurate definition, the total broadband connectivity of Internet users is actually 75%, − that is, 75% of Internet users use broadband, and this is out of 54% of the total population who have Internet access. Does this include broadband 'at work', cafe, schools and colleges...? These, in my opinion, will take care of most of the rest. In short, very few Irish Internet users will be accessing the Internet through anything other than a broadband connection. They may not be at home at the time, but that’s not the point, is it? It’s also true that mobile broadband has proved to be a lot more cost effective and efficient solution lately. If you’re a student, or you know which cafĂ© to visit, it’s probably free! Other research shows that some are using the one broadband connection for TV, music downloads, Skype (VOIP) phone calls, radio and office/education purposes. And why not. It’s so much cheaper (NB/MIR 2007/1).

The report says that only 13% have dial up speed at home. I think that some of these may also have broadband at work, or university, or with Wifi through a laptop. The report doesn’t clarify. But, I’m more inclined to believe the number with only dial up access to the Internet is actually much smaller.

The report then says that only 4% say their broadband speed is 512 kbs or less, but this wouldn’t be broadband speed anyway. 28% say their connection speed is between 1 and 3mbs, which is a good workable speed, and 18% between 4 and 6Mbs, which is pretty fast. But intriguingly 51% of broadband users don't actually know the speed of their broadband connection at home. This begs the question − why do so many people not know the speed of their broadband at home? Are the researchers reaching the right people in the household? The ones who set up the connection? I think it’s a problem to be explored in more depth, and it may be a limit of door-to-door research. I’d have expected that more people would know their net speed, but this report suggests that that this is not the case. (Perhaps it’s simply the case that mobile broadband users aren’t at home.)

Growth, Drivers and the Future

Younger users’ consumption of online gaming, uploading photos, downloading videos and use of VOIP is driving increasing broadband speeds. An increase in the choice of connection vehicles, such as WiFi and mobile is also aiding penetration. Increasing levels of home broadband usage will soon affect bandwidth (contention) and home broadband speeds, though, currently most are happy with their home Internet connection. 3G is unlikely to encounter have such bandwidth issues in the foreseeable future, because there are no wires.

I predict the next year, especially with Christmas, will see an enormous growth in mobile broadband penetration nationally necessitated by poor home broadband access, and must have gadgets like iPhone and Vodafone / 02 3G. There will also be a huge growth in Internet access and use. The satisfaction levels with these modes of Internet connection are very high. Growth will happen mostly amongst younger groups, and those who don't own their own home. While such penetration is only at 1% currently, I think 3G could grow to as much as 10% or greater, bringing total broadband penetration/access among Internet users toward 85%, and total Internet use towards 65 or even 70% (taking into account the growth of non mobile access sectors). So many free Wifi hotspots have sprung up in Dublin in the last year and I’m sure the number will only increase. (This is huge, as, after all, Dublin is where half the county lives or works.) The online gaming industry will probably push Internet and broadband further, again, driven by the Christmas season. We can expect to see growth in Mobile Video and IPTV and these will increasingly be 3G enabled for many segments.

Some say that broadband speed is dropping, but this is a mistake stemming from the fact that they are only looking at individual cases of connection problems, and ‘at-home’ broadband. At-home broadband is becoming a largely irrelevant concept as laptops are increasingly prevalent and net enabled phones, or smartphones become commonplace. At the same time they note that dial up Internet access, and even fixed line telephone use is falling, while VOIP is growing. There’s a need to join the dots here. If 29% are making VOIP calls elsewhere and through other means... they are, of course, accessing the net elsewhere at broadband speed, and no doubt through the same mechanisms. It's the only way to get Skype to work properly.
iPhone and 3G, will push broadband and Internet penetration further in the coming year. Such must-have gadgetry has always driven technology take-up and net use just as the iPod made mobile music and related services like iTune super-popular. Downloaded mobile video and TV will also grow, and is gaining traction in countries such Denmark, Austria, Germany and Finland.

Tuesday, 4 December 2007

IPTV: TV Advertising to Fall Apart

For years now, people have been predicting the demise of TV and TV advertising. But there wasn’t much substance to these predictions and they seemed somewhat far-fetched. However, when Bill Gates makes predictions and acts upon them by launching Microsoft IPTV it is hard not to take notice. Actions speak louder than words after all, and Bills actions are big actions.

What he’s saying in speeches, and predicting is also a lot more subtle and specific than the mutterings of crystal ball gazers heretofore and I think he’s absolutely right, and what he predicts is, in fact, inevitable. The time frame is the only thing that is in question.

In speeches he’s saying that the TV advertising business model, where the vast majority of traditional ad spend goes will fall apart over the next five years, when the new type of news-on-demand interactive TV formats come into their own. Google, and Yahoo! also have IPTV offerings, and services like Joost, Babelgum, 4OD stimulate this growth.

That’s the technology, and how often have you seen articles on the net telling you there is a new offering that will change everything. However, this is different! (Don’t they all say that?) I think this is different because three things are happening in tandem and when these all move together, change happens. Yes, firstly the technology has developed and advanced, but secondly society has also changed with peoples’ behaviours and media expectations shifting through YouTube, Video on demand and UGC. And finally there are necessary major economic shifts, through advertising, to pay for it all. That’s the full set of requirements for technological and social change. These are the three elements that explain why VHS succeeded where Betamax failed and then why DVD outstripped them both; why vinyl gave way to cassette, CD and then downloads changed the music industry forever; and also why IPTV will rock the world of TV advertising and change it forever. (In fact, more recently Amazon are trying the same trick for books with Kindle).

Yes, the technology is changing, but also peoples’ behaviour and the economics to pay for it all is shifting also. The technology has advanced as has the broadband speed to deliver the new formats, but also net ad spend has increased, by around 17% worldwide last year. While it’s still only a small proportion of total ad spend, in many countries it’s on a par with, or bigger than newspapers, radio and outdoor. Over perhaps 5 years, this is a tectonic shift in the world of advertising. TV ad spend however is the mother load and when this starts to come netwards you have to take notice. Bill Gates is predicting this will happen before we know it.
Traditional advertisers are therefore presented with opportunities, challenges and new paradigms to come to grips with. It must be understood that the net simply isn’t like TV, even though you can watch TV over the net. If you don’t take this on board, the TV advertising you deliver over the web simply won’t be effective. There are two reasons for me saying this:

1) The net is a 2 way active and interactive medium, while TV is a one way passive medium and consequently...

2) The net viewer is in active mode, rather than a passive one, so therefore has a totally different set of expectations and behaviours.
It’s TV, yes, but sent through a different channel, for an audience in a totally different state of mind.

TV is passive. Marshall McLuhan called it a ‘cold medium’, because you do nothing. The viewer simply sits back and video and audio wash over them, their only action being to change channel – if they can remember where they put the remote, it’s that long since they actually did anything (imagine losing your wireless mouse, or keyboard?). The modern net, with web 2.0, is not only active, it’s a super-heated hyperactive zone of multi-tasking – the opposite end of the scale, with viewer/users collaborating, communicating, sharing, viewing, reading, talking, listening and contributing to the medium all at the same time at super high speed. When you sit in front of a computer, your role, your expectations and your control is totally at odds with the TV experience. And consequently, where with TV people have to watch long tranches of boring ads because they have no choice but to watch, change channel, or put the kettle on; with IPTV they do have a choice and will ruthlessly flash to something more engaging in the blink of an eye immediately forgetting what they’ve just seen.

So, what can advertisers do to address this viewer promiscuity? Several things in fact and all of them have the IPTV web viewer firmly in mind. The IPTV viewer expects to be offered the capacity to engage with a product or brand on the Internet, (something they are never even offered on traditional TV). IPTV ads therefore need to offer some incentive to engage, like a special offer or reduction. There needs to be a URL to visit and view the product, if they have the time, or somewhere within the ad to register their interest for later, if they don’t. They might be given the capacity to leave contact information, or ring a special phone number on their mobile or work number and this number will relate to this specific ad campaign, not the whole company. In short, ads need to be tailored to the needs of the viewer. They need to have their requirements, interests and availability to the fore to ensure optimal success.

Online, there is also the capacity to know far more about the specific viewer of an ad than on TV. National research projects, like Net Behaviour’s MIR/NB Report means we have a very clear idea of the demographics of the Irish people who visit pretty much any site or Internet software, their frequency of doing so, and a whole tranche of other activity, such as their online purchasing activity. Pre and post ad view and click tracking can tell a considerable amount about viewers interests both through the sites they visit and where they go on these sites. Registration and social networking software means you can know each viewer's age, sex, interests, friendship networks and even what they buy. Ad view capping software also means that ads aren’t wasted through several views of the same ad, but rather views can be evenly spread amongst those who would have most interest, and only shown the optimal number of times to ensure the message has got across, but not too many to irritate.

So, while there are challenges presented to IPTV advertisers, these are completely outweighed by the important new opportunities the Internet offers, and the increased the capacity to make a sale. In short: For TV, getting the viewer from the point of actually seeing the TV ad to buying a product is largely in the lap of the gods, if they even remember seeing the ad. For IPTV advertisers on the other hand, they have a much greater say in what a viewer does immediately on seeing their product advertised. The audience is offered a much greater opportunity to engage with the message on the spot. They can explore the products specifications and price, learn about the producer, and even interact with the ad message asking the advertiser to contact them at a later date, and all without interrupting their reason for being on the site hosting the ad in question. They can also much more easily take the desired action – buy the product.

So, in conclusion: in this instance I think Bill Gates must be 100% right. TV advertising will move towards an IPTV model before we know it. The technology is there, the consumer will prefer it and the advertising will be more effective and efficient. But, the ad industry must just take on board that while it is a TV message, the Internet is a totally different channel, and one much better suited to engaging with the consumer.

Tuesday, 3 July 2007

Irish Online Recruitment

After travel, recruitment is the most popular category of Internet use on a monthly basis by Irish Internet users. Irish jobs is the most popular Irish recruitment site, and the 6th most visited site by Irish Internet users, with 34% visiting the site at least once a month. Recruitment sites are much more likely to be visited weekly, or monthly, or less often, than on a daily basis.

This makes sense, as many will post their CV on several sites, and ‘see what comes in’. Around 20% of recruitment site users are apparently actively looking on a daily basis for a new job.

The second most popular sites is Jobs.ie, with 29%, and then comes Monster.ie, with 27%. Recruit Ireland comes in with 26%. There is then a drop off to the less mainstream and niche sites, with Publicjobs.ie with 13%, Nixers.ie 8%, Careersinhealthcare.ie 5%, Brightwater.ie 5%, Educationposts.com 5% and Salesforce.com with 1%.

Monday, 4 December 2006

Web 2.0

So much has been written lately about this new concept. It’s a buzz term, true, but also a description of fundamental changes happening in ICT. Europe is far behind the Far East and America in terms of our Internet usage, and Ireland is at the bottom of the European scale of things… So, I’d like to discuss some of the philosophy and thinking surrounding the concept. I’m just going to chat about some bits now, as there is an on-going, endless and somewhat tedious debate going on about ‘What Web 2.0 Means?'. These are the bits of what it means that I think are most relevant and interesting. Hopefully they’re relevant to you too. Tell me what you think

Many people, from the head of Microsoft and Apple, to futurologists, have pointed out what should have been obvious, but wasn’t too many. Once the software and hardware is in place to a sufficient degree, people start to do business online. Once they’re doing that, the business winners will be the service companies. It’s a clear set of stages which can be explained by analogy with the train industry.

The first companies to do well out of the age of the train are the track builders, Cisco in terms of ICT. Then the engine builders, Microsoft and Intel etc, and then the various train companies. After that, the train companies that get the trains running on time, and quickest, post the best timetables and get you to the stations efficiently, these are the next wave of companies. On the Internet thats true too, and we’re on the third wave of new communication technology development. Service! The funky software and sites that set appointments and schedules, the widgets that help you manage chats, conversations and photos. The software that gets you communicating, gets you sending your data from A to B the in the most efficient manner, and reminds you when to send it. These companies are distinct from the utilities; those who build the machines, and the pipes that channel your information around the world.

However, we’ve gone beyond this stage too. The software providers now place value on their software not by what it can individually do, but by the fact that everyone else is using the same software, or that this software speaks will all the others types of software, regardless of who’s using it. So, the individual piece of software might be totally cool, but it’s better if it merely works well, and everyone else uses it too. Also, it’s better if the software is online, and free. This is a whole new model for software companies and a very risky strategy for the software company investor. If the software catches on, happy days, as long as you can get sufficient donations, and/or advertising, or its used by so many people it will be bought by Google, or Yahoo! or someone. (Unlikely to be Yahoo! at the moment.)

So, the loop has reached the stage where the service itself is more important than the software. For example, consider Plaxo, Del.icio.us and the millions of other free site soft wares out there, doing everything from your household accounts, to setting up a free shop.

Data That Grows with Use and Users
This comes out of the previous point. As more people use these free/cheap online services, the better they get. More people tag on Del.icio.us, the better it gets; more people use YouTube, or Bebo, it comes alive; the more people use friendsreunited, dating sites or geneology sites, the more opportunity they have to function.

Trusting users as co-developers

This is where the net development goes all commy. It always was in a way. The language of the net, with surfing, waves and nets. Its all symbolic of the watery, fishing land of the west coast. The America lingo, is there because that's where it all started. That’s where Silicon Valley is, and the people with that surf dude mind-set, the bright ones, made their millions. However, they made their millions out of IP. Shares, futures, and intellectual property… all that stuff.

Open source is a term for a movement where the developers of a peice of software invite users to develope that software. Most web and other software these days is open source, is seems to be in a stage of perpetual beta test. Indeed new free versions of the software seem to come out daily, rather than once every few years in the past. With open source and software stuck in beta test stage really taking on, BitTorrent is an example, software development and use comes together, software and sites become more popular, and the users more loyal.

The Power of the Collective

Remember the Borg? Well, Web 2.0 is a Borg concept, or vice versa. The power of Wikipedia is the users of Wikipedia, the power of Del.icio.us is the members of Del.icio.us. There was a time in the very recent past, where the database, and the time that had gone into its construction, and the data it contained was the valuable entity. Now databases are populated by the users of the databases, and their true value is in their popularity. The use of the database is free, and everything else follows.

The Long Tail
A great concept with a silly name. Think of a line on a graph. Starting big, and then petering out. The big companies are at the high part of the line, but on the internet, there are thousands upon thousands of smaller businesses. The tail of the graph is very long. 5 years ago, companies used to service the head of the graph, and not the tail… Now, the big business is being done servicing the needs of the long tail. Double click is a good example. Big expensive software which had to be bought by large publishers who wanted ad revenue from a few standardized formats on their site. Google arrives along with a whole new mechanic for buying ads, and anyone can ad a small bit of code to their site, and the ads are served. A completely different format, everything's changed, and it works. Google services tiny companies, and individuals with blogs. Google services the long tail.

Conclusion
The Irish Internet space has changed immesurably and irreversibly in the last few years and we have to understand it if we are to satisfy the needs of advertisers, advertising being the life blood of many of the sites and services discussed above. Net Behaviour is an advertising company that tasks itself with understanding the Internet the way it is today, and tracking the changes in Internet usage as they happen, to best facilitate advertising for our clients. This is an ongoing job. We've found in the last year that sites with user generated content are working better and better for our advertisers. We've also started working with clients on strategies that involve the new social movements and usages of Irish Internet users. In the past the Internet had the potential to be a two directional medium but content was coming much more from traditional content providers... the newspapers, TV stations and radio. In the last year the flow of content has come much more the audience. User generated content sites and services have also developed more audience than tradition Internet news and information providers. This will be more or less true as fashions change, but I'm of the opinion that the graph is only going one way on this, towards UGC, though these will progressively be owned by International conglomerates.

I understand of course that there are different types of content. If there's a war with Syria, traditional news providers will get the audience. But I feel there is a new segment of audience that will always like UGC, the get a buzz out of providing for it, and getting their friends and colleagues to view what they've provided, ,or sending funny stuff around the a gag group. Also, there will always be those who enjoy the un-constrained fun that can come from hidden video, jokes and pranks and studenty type films. Twink fell foul of this set. Does it matter who owns these sites, or where they are? No. Irish eyeballs are watching the web all over the world, and watching extremely local and international content, regardless of where the server resides, or who owns to company. NB will facilitate advertisers to reach this audiece, wherever it may be.

OK... Thats it. Those are some of the bits of Web 2.0 that interest me. I hope thei interest you too.

Friday, 17 November 2006

Buzz Marketing

I've been working on a presentation about Web 2.0 for the last while, and wondered if anyone had any insights as to what they think Web 2.0 means. Extensive research is pointing very much to the power of new participatory Internet us, and there are sites out there specifically to discuss the topic, (when they can agree what it is). But my question is, what does all of this mean for Internet advertising?

We already advertise extensively on MySpace, YouTube, and Bebo, and work closely with Google moving with the developments in pay per click and placement and we do ongoing viral and buzz marketing for some clients (it doesn't suit everyone yet), but I feel that this way of getting a clients message out there has only just begun.

The seed in this country, was Bebo. Suddenly, every kid could have their own website, and swarms of these gathered around the concept of schools and colleges. In a year there were 500,000 users of Bebo. The consumer had definitely caught up with business when it came to web development and activity, and passed them out.

But now, I think the sheen has gone off Bebo. It is still as popular and effective an advertising medium as ever mind. More so in fact. We've been optimising our spend accross a range of websites, and those, including Bebo, are continuing to improve month on month. No, I just think the faddishness has gone out of it. Viral campaigns abound now, and use YouTube and Bebo as their communication medium, their channel, rather than advertising specifically to users of these sites. Shamrog City, for Funda, is a great example. A great idea, carried out well, with fantastic results. This has been reported in all media, a first for the web I think. TV, radio, press and trade magazines, and lauded by all as a turning point in Internet advertising. NB helped seed this creative throughout the web, on video sites like YouTube, blogs, bulletin boards and everywhere else that such a concept can be linked. We learnt a lot, and its been fun.

Quo Vadis? Where to now? Well. I think this type of conversational activity and marketing is where. Where it leads us? Who knows... but we're going anyway.