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Steve Broback, CEO, Parnassus Ventures

Newspaper Readers Abandoning Print for Blogs

by Steve Broback on April 30, 2007

Today in the Wall Street Journal, the article Circulation Falls at Many Papers describes how readers are transitioning away from paper-based news.

Many of the nation’s newspapers continued to post circulation declines, reflecting the industry’s continuing battle to hold onto readers migrating to the Internet and other media, according to the latest figures from the Audit Bureau of Circulations.

Meanwhile, in January 2007, Netratings announced that traffic to blogs aligned with newspapers surged in 2006.

The number of visitors to the blog pages of the top 10 online newspapers grew 210% in the past year, far outpacing growth to the parent sites. Nielsen/NetRatings found that while the unique audience to online newspapers grew 9% from December 2005 to December 2006, the number of visitors to blog pages at the top newspapers skyrocketed and accounted for 13% of the parent sites’ total traffic.

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According to the Wall Street Journal today, smaller, more flexible blog networks offer advantages for advertisers. Reebok is one company who is putting more emphasis on blog ads:

And the ads didn’t show up just on Glam.com. Glam has assembled a network of roughly 300 similarly themed blogs, Web sites and magazines that it links to — broadening Glam’s reach. Glam’s female-oriented network drew 10 million unique U.S. visitors in March, making it the second-largest women’s online property after NBC Universal’s iVillage, according to comScore Media Metrix.

“You are not just hitting one portal; you have thousands of these other sites. By showing up incrementally on these other sites, you are getting more bang for your buck,” says Marc Fireman, head of digital marketing for Reebok.

Blogs also are more flexible with their coverage — but at the cost of editorial integrity?

Glam has also shown it is willing to blur the line between editorial and advertising by, for instance, getting its sponsors mentioned in its network of blogs. While bloggers have editorial control over their sites, they’re often receptive to anything that looks like news in the fashion, style and beauty areas. For example, Glam Media announced yesterday the launch of a handbag designer competition with Hearst Magazines’ Marie Claire. During the day, a number of blogs noted the news with links back to the contest’s site. In the Reebok campaign, the Glam-affiliated fashion blog “Couture in the City” recently posted an item about the Glam exclusive “Scarlett Hearts Rbk Giveaway.”

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This morning’s Wall Street Journal has a cover feature detailing how Justen Deal, an employee rabble-rouser was able to create a public relations nightmare at Kaiser Permanente with one widely-broadcast internal email criticizing the company’s efforts to digitize sensitive patient information.

The e-mail was sent on a Friday after most employees had gone home for the weekend. Kaiser IT staff spent much of the weekend trying to purge it from the e-mail system, but they met with limited success. According to the Journal, “by Monday, the mass mailing had reached an estimated 120,000 computers at the company. It had also leaked into cyberspace.”

The highly critical epistle was picked up by the blogosphere and became a major issue for the company. Some even speculate that it could have affected Wall Street perceptions.

According to the Journal:

“Mr. Deal…quickly became a cause celebre in the blogosphere and beyond. HIStalk, a popular health-care IT site, featured ‘an exclusive interview,’ with Mr. Deal. One stock analyst says that Kaiser’s tribulations could alter the competitive landscape for IT vendors.”

We’ve said for years that a blog post is “an email to the world” and it’s obvious that when this mail jumped from someone’s in-box to a blog entry it took on a life of its own.

Justin Deal– the author of the email was not a blogger, so to send a large-scale message, he had to cobble together a mailing list via manual means:

“But it wasn’t as easy as pushing a button. He didn’t have access to a company-wide “send all” address, so he improvised. He says he bought a cheap software tool that helped him gradually build a list on his own computer.”

Consider this: if Kaiser had been using an enterprise blogging system (like Blogtronix, iUpload, Marqui, and others) instead of e-mail for internal workgroup communications, Deal’s embarrassing efforts would likely have been stymied because it would have gone out as a blog post with a central location rather than a mass mailing. Furthermore, this posting could have been held for management review before being made public. Posts peppered with terms (as this mail was) such as “conflict of interest,” “recklessly,” “losses,” “inefficient,” “exposed,” “internal resistance,” “ignored,” “problems,” etc. etc can automatically land in a “potential rants” folder for review by superiors before propagating.

This is one reason we work with corporate clients to set up blogging systems that accommodate several blogs, some public-facing, some internal. This platform allows management to exercise control over what is said and when. It also means that public-facing employee posts are driving link love and Google Juice to the corporate domain.

That said, it’s obvious to us that it’s not always in an employee’s long-term best interest to create a media property — especially in their spare time — that they can’t take with them if they make a career move. When Scoble left Microsoft, his blog went with him. If the blog had been a Microsoft property, his value to another firm would arguably have diminished significantly.

So. In many cases we encourage employers to have their staff populate blogs owned by the corporate entity, while at the same time we tell friends, relatives, and clients who are independent consultants to avoid investing a lot of personal time in any blogs that can’t migrate with them.

Yes, we are consistently inconsistent.

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Blogs Displacing Newspapers: Ad Revenues Shifting

by Steve Broback on April 23, 2007

Sarah Ellison and Suzzane Vranica report today in The Wall Street Journal that for most newspapers, online advertising growth won’t be as strong as predicted. Blogs and other news sources such as myspace are partly to blame:

Media buyers also indicate marketers are beginning to look beyond traditional journalism sites, realizing many news junkies go elsewhere, too. “Advertisers are getting less scared of blogs and newsgroups and now are beginning to take money away from the traditional newspapers’ sites,” says Greg Smith, chief operating officer of Neo@Ogilvy, an interactive ad agency owned by WPP Group’s Ogilvy & Mather, New York.

Another significant drain profiled is the move toward search-focused ads, which of course is a key source of revenue for many bloggers. FYI that we’ll be hosting sessions contrasting ad networks for bloggers at our next event.

[click to continue...]

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The Wall Street article Institutions Engage More On Confronting Scandals details how Dartmouth, Tuck, and other colleges are realizing the critical need to insure they are actively managing how they are viewed by the public. Several lessons here for corporations as well.

“Like companies, business schools can be touched by scandals and crises, yet many haven’t prepared for events that can tarnish their reputations. They are often caught off guard and must scramble to react, sometimes exacerbating the damage by failing to communicate effectively with the media, alumni, students and employees.”

The key is to success is a proactive vs. a reactive approach (emphasis mine):

“Angel Cabrera, president of the Thunderbird School of Global Management in Glendale, Ariz. “Students are buying a brand and an experience, and they use the school’s reputation to decide where to go.” Dr. Cabrera himself has dealt with recent financial problems at Thunderbird and rumors about selling the campus or merging with another school. “You need to be proactive when you’re dealing with negative publicity,”

The issue of transparency and citizen journalism rears it’s head as well:

“Vincent Hammersley, communications director at Warwick Business School in the United Kingdom, had to adjust to one big difference when he switched from the automotive industry. “At my old job, I could insist that employees not talk to the press on company issues without my consent,” he says. “Now, academic freedom of speech means that I am happy if I hear about a comment from a member of the staff before I read about it in the press.”

Strangely, no mention of blogs or feed monitoring in the article, especially considering the word “engage” in the headline…

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At the last Blog Business Summit, I had a nice chat with Mary Hodder where we commiserated on how we longed for a blog search engine that would let us find posts by authors with little to no formally recognized “authority.”

As experienced bloggers know all too well, Technorati and Google easily help us find posts (and authors) that are linked to frequently, but in my mind that just advances the echo-chamber problem. What I’ve wanted is a way to find authors, articles and posts that are largely “undiscovered.”

We have a blog called bigbusinessjet.com that is sponsored by Greenpoint Technologies and covers the rarified space of owning and operating ultra-expensive business aircraft. Today I found a highly relevant article put forth by Dealmaker Magazine (a site with a PR of zero (?!)) that no one else has blogged about, hence has been ignored completely by Google Blog Search and Technorati.

How did I find it? I used the (thankfully under-appreciated!) Live Search from Microsoft. Live Search has some easily accessed parameters that enable you to find unpopular pages that have been recently been updated — and can even provide an RSS feed for that search. The essential parameters are found under the “Advanced” link, and the key settings are within “Results ranking” which brings up 3 sliders (see below.)

Live Search For Bloggers

What I asked for was newer results that are relatively unpopular but match closely the search string “bbj3″ — which is the industry term for the Boeing Business Jet Version 3. Note how I could just as easily have entered the parameters as text.

Without Live Search, I don’t know if/when I would have found this article. Probably after some other blogger picked it up I guess…

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According to the Economist, Arab bloggers or “pyjamahideen” are exerting pressure on local authorities and affecting political change.

…youthful denizens of the internet are chipping away at the overweening dominance of Arab governments… blogging has evolved within the past year from a narcissistic parlour sport to a shaper of the political agenda. By simply posting embarrassing video footage, small-time bloggers have blown open scandals over such issues as torture and women’s harassment on the streets of Cairo.

Reinforces our long-running assertion that businesses need to understand the difference between content and platform when talking about blogs. Physics papers were not why the Web mattered, and personal diaries are not why blogs matter…

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As a follow-up to our work with CEA in evaluating bloggers for the 2007 CES show, and in preparation for our 2008 CES blogger bash, we’ve launched an in-depth analysis of blog activity related to the January event.

Using a combination of several Web intelligence engines and human review of over 3,000 individual blog posts, we’ve captured the majority of blog posts made by those in attendance at CES. We’re starting to see clear patterns emerge.

One of the largest data sets we have on hand is extracted post subject lines. We’ve broken those subjects into individual words and have analyzed them for frequency. Below is a chart depicting the top 150 or so words in use–after assignment to companies best aligned with them. The iPod was the single most frequently mentioned product term. Vista, iPhone, and Xbox also were hot topics.

Ces Subject Word Analysis

Note that PodTech’s Bloghaus sponsored by Seagate was in the top ten. Heads up that thanks to the data being munched and the services being tapped into, we’ll soon have a comprehensive set of interpreted CES blog-related info. We have a list of the hundreds of individual bloggers who attended CES, and are ranking them now based on influence. We’ve also begun the process to glean product and company mentions (and sentiment) within blog posts.

FYI that Monster Cable is just one of the client companies who have commissioned us to deliver to them the final report we’re preparing. If you are interested in receiving the report based on this data, contact Kim Larsen.

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I’ve tried to stay on top of this recent “Wirged” memo fiasco, and have read most (but certainly not all) of the posts produced so far. I have to say I am somewhat disappointed by the one-dimensional commentary. All I seem to see are variations on “dossiers are anathema to transparent journalism!” (from the former baristas) and — since every PR old-timer now has a Typepad account — lots of “get real! We’ve used dossiers since I started spinning during the Eisenhower adminstration!”

The best analysis I’ve seen so far, and one that cuts to the heart of the issue is Jeremy Wagstaff’s post. Do yourself a favor, and leave this site now and read it. (Please come back.)

Wagstaff interprets several key passages in the memo, and comes up with five essential messages that Wagged appeared to be sending to their Microsoft masters:

1) “We wanted them (Wired) to write about Sandquist and they are.”

2) “We will be exerting influence over the writer as he writes.”

3) “We are exerting influence over the timing of the journalistic process.”

4) “We will exert influence over the journalist to ascertain the content of the article and (implicitly) seek to remove anything we don’t like.”

5) “We will use all tools in our kit including personal feelings and guilt to ensure the journalist writes what we want.”

In essence, Wagged appears to be telling their biggest client that they are TOTALLY on top of it and in control — they have Vogelstein corralled. The $300 plus dollars an hour they charge (per staff head in the meeting) are being well spent. Keep those checks coming.

Immediately Fred Vogelstein responds to Wagstaff in a comment and echoes what Chris Anderson has already posted (and other Wired staff have commented elsewhere) — that points one through five are a total fantasy. All from Wired make very persuasive cases IMHO.

Wagged immediately responds with the following brief podcast.

Hmmmmm. So far all that Frank Shaw has blogged (hey, aren’t there any other bloggers over there at Waggener Edstrom??) is some happy talk about how “we just want a super-great interview, and dossiers help us help the reporter!”

Hey, the big point here isn’t about whether dossiers are a good idea or not (I think they are) to me, it’s whether you’re feeding your client a bunch of hooey, or if Wired can be gamed by high-priced spin.

Which is it?

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The Wall Street Journal article Ogilvy’s New Digital Chief Discusses Challenges features an overview of WPP Group’s Ogilvy North America take on the new advertising landscape and how traditional agencies are struggling with the new world of Web, mobile, search, and social media.

Ogilvy’s move is the latest sign that big traditional ad agencies, under pressure from clients, are trying to make Web-based and mobile advertising a stronger part of their day-to-day operations. But as advertisers are shifting more of their ad budgets into digital media, many are wrestling with a shortage of digitally experienced creative staffers at their ad agencies. The issue was highlighted by Nike’s recent decision to move part of its business away from its longtime ad partner Wieden + Kennedy because of dissatisfaction with the shop’s digital abilities.

Based on last week’s activities, I think you can add Waggener Edstrom to that list of old-world corporate agencies that are struggling to be a part of today’s game.

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Gartner and others have been reporting for some time that blogging has hit saturation. I wonder if Gartner predicted 1995 that HTML had peaked because all most of the world’s physics professors had already put their dissertations online.

I’ll say it again. WordPress, Movable Type. Typepad, Drupal, etc. are (for most) simply a better way to build a WEB SITE. Blogs are an essential Web architecture, not just a limited platform for diaries.

As a bone to the “peak” crowd, I’ll agree–yes, most sweater ladies that are going to write about their cats have probably already done so.

The use of blog engines will continue to grow significantly, as they overtake those horrid flat HTML pages still being built like crazy.

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Just for the fun of it, I decided to play with Google Trends and see how searches for blog engine terms were trending over time. I was surprised to see how much more often WordPress was appearing compared to the past. This is likely due to WordPress.com, and how people are using Google simply to navigate to the site where they can update their blogs. That being the case, I assumed that Typepad would be way up there too. I often enter “typepad” into Google to navigate to my login page.

The phrase “vox” is used in so may other ways than 6A’s service that I attempted to normalize the chart by moving the Vox line down to where it would have originated at service launch if the term was unique.

Blog Engine Search

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Want an Oscar? Get Blogging–or Engage with Bloggers

by Steve Broback on February 8, 2007

The Wall Street Journal’s Informed Reader column reports today that Hollywood studios are enlisting bloggers to talk up nominated movies, which is “Ruffling Feathers in (the) Hollywood Hierarchy.”

As we saw with electronics firms at CES this year, the article reports that:

Movie studios have embraced bloggers as a cost-effective route for launching all-important Oscar campaigns. Studios frequently give a handful of high-profile Web sites a first look at trailers or rough cuts of movies. The new dynamic has ruffled some feathers in Hollywood, where for years studios focused their outreach on trade publications and other mainstream media.

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I’ve been spending some time lately researching the brand monitoring space. A portion of the various vendors of these services (Biz360, Brandimensions, Cymfony, Factiva, MotiveQuest, Nielsen BuzzMetrics, and Umbria) have approached us to ask about potential conference sponsorships over the years, and a few have presented at one or more Blog Business Summits.

I read that Peter Kim of Forrester had conducted in-depth evaluations in Q3 2006 of the main players in this space, and also “conducted client reference interviews with 17 user companies, including ABC, Activision, BP, Citigroup, CNN, DaimlerChrysler, Fleishman-Hillard, Hewlett-Packard, Nike, SAP, Sun Microsystems, Toyota, VeriSign, Verizon, and Xerox.”

The result is a PDF file available for $995.00 here, or for free(!) here.

After reading the report, I still had a few questions, so I called Peter Kim up and grilled him. He was very patient with my ignorance, and very generous with his time. Here is the short synopsis of what I concluded from the call:

To get an analysis across all major media (Web, Television, Print) that reveals what is being said (and how often) about you or your products — you’re talking a price tag of around $75,000.00. The alternative is do it yourself ad hoc (Google searches, Technorati, etc.) for “free.” Of course “free” means a ton of staff/your time.

How much of this stuff is algorithmic? It varies, but non-trivial human involvement is essential for all of the profiled services. At least one company (Brandimensions) employs an army of 400 part-time humans to manually catalog and tag news etc.

Another interesting note is that the market for these services appears to be booming. Kim said that many of the services were growing their client lists at a rapid clip, and based on the recent coverage of VC funding for buzz monitoring firms, there seems to be no lack of investor enthusiasm.

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The Wall Street Journal reports today that Steve Case’s Revolution Living LLC is taking their Lime cable network off of cable TV and will be now be primarily Web-based. According to Chief Executive C.J. Kettler, the audience has been “shifting” and that the Internet provides a “better opportunity” for them.

Toyota Motor Corp. and L’Oréal SA’s Garnier will advertise on the site which will “feature original video focused on nutrition, the environment and related issues.”

This relates to another article in the WSJ today, that describes recent Harris polling indicating that online videos have become mainstream.

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World Leaders Blogging(?) at Davos

by Steve Broback on January 24, 2007

According to an Economist magazine podcast, the “shifting power equation” theme of this year’s Davos-based World Economic Forum has them encouraging the attending CEO-type attendees to get into blogging.

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Wall Street Journal to Upgrade Search: NO FEEDS(?!)

by Steve Broback on January 22, 2007

I’ve been an enthusiastic reader of the Wall Street Journal for 25 years and have felt that their editorial coverage of the blogosphere has been on the mark. They seemed to “get” blogging early, and cover the space quite well.

A promo on their current archive article search engine is offering a sneak peek at a coming search upgrade that will provide a “new look.” Naturally, I clicked through right away — and fully expected to find search feeds, but no luck!

C’mon guys, the only upgrade that really matters is the one that offers proactive search. The WSJ has shown enough savvy of late that I am thinking this was an intentional omission. I’d like to have been a fly on the wall during those internal discussions.

What do you think? Cluelessness or are they being opaque in order to drive more eyeballs? (I guess both may be argued as cluelessness…) I say purposeful opacity–OR hopefully a feature to be implemented at formal launch…

Wsj-Search

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A Blog Gets New Editor: Wall Street Journal Goes Ape

by Steve Broback on January 19, 2007

Two and a half years ago, when we launched this site, the idea of blogs being a serious business medium was hotly debated. Now, Gawker Media changes an editor and the Wall Street Journal covers it like a new Federal Reserve chairman had been appointed. 665 words dedicated to the piece Gawker Shuffles Its Editors, Again, Amid Increased Competition for Gossip.

Consider yesterday’s article: Hilton Hotels CEO Will Step Down At End of Year.

222 words.

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Since we launched our first blogger gathering back in 2004, we’ve not only had to assess blogger influence metrics for our own events, but for several other companies as well. We recently began assisting the Consumer Electronics Association in their efforts to insure that the best aligned bloggers get in as “press” to their January 2007 CES expo in Las Vegas.

While there is no “blogger” checkbox in the 2007 CES application form, bloggers who apply as press and supply appropriate permalinks to “articles” are being routed to us for evaluation. While it’s still early in the process, we’ve processed several dozen blogger requests and are pleased to report that CEA is very happy with the results of our research.

We know from our conferences and consulting that PR firms worldwide are working hard to cultivate and prioritize bloggers for their clients, so let me share the approach we are taking.

In a nutshell, we are looking for individuals that a typical CES exhibitor would want to have come to their booth. The ultimate blog(ger) would have the following attributes:

a) Lots of eyeballs: A highly trafficked blog

b) Lots of influence: Inbound links, bookmarks, and subscribers aplenty

c) Lots of posts: 1 or more posts daily over a significant period

d) A “real” blog: RSS feeds, Permalinks, compliant code, etc.

e) Highly topical content: a blog or writer who mostly/exclusively writes about the kind of products being displayed at CES.

f) Other intangible assets: Passion and/or significant expertise etc.

Luckily we have automated most of the data gathering required to capture and analyze the two dozen plus metrics that give us the full picture of a blog(ger.)

Consider Engadget or Gizmodo. They have all 6 attributes. Most “A listers” have 3 or 4 (what they lack in topicality, they make up for it in other areas.) Notice how a passionate, knowledgeable newbie will be accepted — we’ve approved promising bloggers with a PageRank of zero and a non-existent Alexa ranking.

After hosting our own events and discussing “influence” metrics at length with Robert Scoble, Mary Hodder, Jeremy Pepper and many other gurus, we’ve come to the conclusion that you can’t afford to ignore those up-and coming “A”, “B”, or even “C” listers. Topicality and passion are critical and can transcend page views. Many PR firms don’t understand this yet.

More detail on this subject to come. If you are a blogger who is headed to CES, please let us know, as we plan to host a party for bloggers at the show. Just email steve AT blogbusinesssummit DOT com. We’ll be mailing all of our conference speakers and attendees as soon as we have booked the venue.

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As a precursor to our Small Business Blogging session at our upcoming conference, we highly recommend the article How to Get Attention In a New-Media World by Gwendolyn Bounds. In some ways it contradicts what we know from a few successful blogs who have leveraged traditional PR to get their blogs noticed.

“Three years ago, fledgling New York shoe and dress designer Holly Dunlap hired a well-known public-relations firm to put her brand name — Hollywould — on the map. She paid roughly $6,500 a month as a retainer…Ms. Dunlap, in fact, was seeing results — just not so much from the PR firm. She had begun penning a diary on her Web site, www.ilovehollywould.com, chock-full of juicy details about her personal life, from late-night keg-party revelry in her downtown Manhattan boutique to boozy jet-setting jaunts through Europe…After five months, Ms. Dunlap cut loose her PR firm, betting the Web site could do more to build her company’s image. Today, she spends roughly $700 a month on Web maintenance and commands an average of 20,000 visitors a week, a figure that can triple when her site is mentioned on other Web-site trend leaders such as DailyCandy and Gawker.

Our best PR,” Ms. Dunlap says, “comes from people who are mentioned or featured on our site and forward the link to their friends.” Ms. Dunlap estimates sales of $6 million to $8 million for 2006 for Hollywould, and her wares are now sold in Saks Fifth Avenue, Neiman Marcus and Harrods of London, among others.”

I’d say the right strategy is abandon the PR firm that doesn’t “get” blogging (few do at this point.) and get one that does. OR, hire a consulting firm that specializes in engaging with the blogosphere. The problem is that you’ll have a hard time finding a PR firm (good or bad) that isn’t touting a blog-centric strategy. The issue is discovering which ones are blowing smoke, and which ones have their act together.

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