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Author:   Doc Searls  
Posted: 12/8/2000; 1:17:49 PM
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Msg #: 430 (top msg in thread)
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Rage on

Two items came in with the last email run. First, Seth Godin tells us this in his latest Ideavirus newsletter:

    Procter & Gamble, Kraft, Coke and the other fabled brand marketers built huge businesses optimized around the idea that you could make $105 in profit if you spent $100 on TV and newspaper ads. This simple equation led to billions and billions of dollars of advertising expenditures and the creation of entire industries.

    As the equation gets less and less effective, many of these businesses are getting more than a little nervous about their future. And rightfully so! After all, just because they're optimized around one business model, there's no reason to believe that they are likely to make the transition to a new one.

Then Chris Locke points us to Halcyon Days of Broadcast Ad Model Fade, which he wrote for Digitrends.net. It's great stuff, as always:

    Mass media are “mass” because they have for so long served the core requirement of mass production: to move excess inventory. The more product such advertising could move, the more profit the company made, so obviously, the bigger the audience the better. Mass media are mass because they’re huge. And the way such hugeness is achieved is by appealing to lowest-common-denominator tastes in terms of programming content. The content is merely bait to entice the audience. The real show, the real message, is the advertising. Therefore advertisers want to lower the common denominator so that they can get everyone possible into the audience.

    The best medium is the most massive medium. The best place to place advertising is where the most eyeballs will be forced to eyeball it. This is why CNN loves Elian Gonzalez and Princess Di and O.J. Simpson. This is why the cultural legacy we are creating and exporting to the rest of the world is a simple-minded sit-com with a dumbbell laugh track. This is the broadcast model.

And:

    Mass marketing to micro-markets is just plain stupid. And companies already know that. This insight has long been practiced in the form of demographic segmentation and target marketing. Companies that are already marketing to segments are clearly no longer marketing to the undifferentiated mass. In one sense, the Web has merely put this powerful pre-Internet trend on a steady diet of steroids.

    But there’s another deeper sense in which networks are changing the fundamental nature of commerce. When companies use the techniques of demographic segmentation, they look at markets through the lens of product. “We have this thing. Who can we get to buy it?” In contrast, when online audiences look at this new medium, they look through the lens of interest. “I’m curious about this thing. Who can tell me more about it?”

If I could quote the whole piece without being ridiculous, I would. Just go there and read it.

Micropay for laughs

Last summer I started going on about the need for a tip jar system of payments to artists whose work we like enough to share. The inspiration came from a paragraph near the end of Courtney Love's now-famous address to the recording industry (and the rest of us):

    I'm looking for people to help connect me to more fans, because I believe fans will leave a tip based on the enjoyment and service I provide. I'm not scared of them getting a preview. It really is going to be a global village where a billion people have access to one artist and a billion people can leave a tip if they want to.

For a while we got a little buzz going around that one. But I kind of back-burnered my interest in the issue, like I do with pretty much everything after awhile.panda

Until this morning, when alert reader Greg Stephens of ZWOL pointed me to Big Panda Comics' successful appeal for appreciative payments in ten-cent denominations.

Turns out the site is most deserving (as is ZWOL). I've alreay taken far more distraction time that I had budgeted, getting in some needed chuckles. So check 'em out. And leave a tip while you're there.




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