A few days back, it was reported that Facebook now had a million active advertisers, and that LinkedIn has 3 million company pages. I’ll let that sink in, in case you hadn’t heard. Despite all the social-ness, I realised it’s impossible not to call it media. The wiki definition for media is “tools used to store and deliver information or data” That, for me, is a smartphone now! I also wondered how many media behemoths could boast of a million active advertisers. And that’s when it really struck me how much the traditional media we were used to have been sidelined – yes, they still get advertising revenue, but from a sheer reach perspective. Google, Facebook, YouTube and many more platforms get anywhere between a few million to a few hundred million visitors every day. To put it all in perspective, TOI – the world’s largest English daily has a readership of over 7 million.
Media and advertising have had a very intertwined life, unless of course the publication/channel has been on solely a subscription based model. I think the magic of Facebook (and Google, before it) and those that followed is that they have democratised advertising by not just making it something any small business could spend on according to their means, but also giving them the ability to advertise according to contexts – intent, interest, social etc. Though Google, Facebook etc are still intermediaries, they never flashed their powers, though the latter has begun to, recently. As brands move away from a one-size-fits-all mode of advertising, these platforms give them more options of form and function, and changing the face of advertising. (Google’s exploits are known, here’s a pertinent read on Facebook)
In such a scenario, what really does a traditional media channel have to offer to its consumers and clients? I’m not saying that they’re all going bankrupt next Sunday, but it’s clear which way the wind is blowing. One way, of course, is to use their brand value, and replicate (and grow) their audience on devices and platforms which better serve advertising interests. They can hone their value offerings by offering various contexts and their combinations – local, social, interests, and so on, and build business models for each. The early movers are already making big deals. But that is the red ocean that everyone is fighting for. How really can a player differentiate?
I had a vague thought. Media’s original strength was its relationship with users and the trust involved. In the social media era, how can that be leveraged? Flipboard has already allowed users to become curators and create their own magazines. Is that the future, along with shared revenue on advertising? What if users can also curate the advertising their ‘subscribers’ can see? After all advertising is also news/information and has a certain value depending on the source. Traditionally, media has been the middle man between advertisers and users, but what happens when everyone is media? Can media start aggregating influencers in every domain, including niches, provide them the material for curation, negotiate on their behalf to relevant advertisers, and share the revenue? Perhaps the next disruption will be the platform that can handle the complexities involved. What do you think?
until next time, mediator