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New Book by Chris "Long Tail" Anderson Explores the Economics of Free

image “FREE” sounds like a fantastic upcoming book discussing the problems of making money from digital content.  It’s not out yet, but BoingBoing.net reviews an accompanying Wired article.  The key thesis is this: There is no such thing as a market for digital goods, only a market for digital services. 

The book/article also discusses the huge psychological gap between products that cost nothing, and products that almost cost nothing.  I can certainly attest to this, as I recently signed up for JungleDisk, a data storage service backed up by Amazon.com’s “pay-as-you-go” S3 storage service.  Their rates are extremely low, and I haven’t really started using it, but I did rack up a $0.02 bill thus far (you’re charged a penny per 1,000 requests to list your files, a penny for 10,000 get requests)

Even though these three cents probably have me covered for months of requests, my first reaction when seeing the two cents on my account was an instinctive “Uh-oh, am I sure I want to commit to do this?”.  All over TWO CENTS.  Money I would hesitate to pick up off the floor.  Eventually common sense prevailed, but something in my “lizard brain” was triggered.

I’m definitely looking forward to this book.  As DRM dies a quiet death, the time is ripe for this book.

[Photo credit: me! I’ve been waiting for an excuse to use it…]

My Thoughts on Microsoft/Yahoo.

imageAn acquisition of Yahoo by Microsoft would undoubtedly be a boon for Microsoft, no matter how bad they bungle it, if only due to the subtraction of competition. But is it good for the consumer? Well, my initial reaction was one of fear and trepidation. Microsoft has a history of buying valuable properties, stripping them for parts, and baking them into their same old bread and butter offerings (Office, Windows, and MSN). Can you think of a single major online “brand” that has come out of Microsoft in the past 5 years? Windows Live? Maybe, but that’s a stretch.

Yahoo, on the other hand, has successfully acquired and fortified brands like Flickr and del.icio.us. “Microsoft™ Yahoo!™” is one thing, but “Microsoft™ Flickr™”, Well that idea can bring your typical Web 2.0 utopian to tears. Stripping Yahoo for parts would be terrible for the average Joe. Yahoo is loaded with so many interesting technologies and tools (Pipes, anyone?) that would undoubtedly be lost in the shuffle if Microsoft tries to pick it apart.

However, what would be good for Microsoft, and for the consumer is if Microsoft plays it smart and realizes that Yahoo is a far more relevant brand in this day and age, and doesn’t mess with it. What the Yahoo acquisition can do for Microsoft is allow it to stop their hopeless and incredibly annoying strategy of building desktop software that tries to supplant the web.

If Yahoo became Microsoft’s “bread and butter” (which would mean figuring out how to beat Google in the advertising market - no small feat), it would take an enormous amount of pressure off of Windows, which could actually once again become a useful, streamlined OS, instead of a bundle of “Look, you can’t do that on the Web!” whiz-bang eye candy features.Time will tell how this will play out. The great thing these days is that for every Yahoo site or feature that Microsoft ruins, there will be 10 scrappy startups ready to jump in and pick up the slack. And let’s not forget that Google was a scrappy startup a mere 10 years ago. Play your cards carefully, Microsoft…

Wanna Work for Me?

ZoomInfo is looking for an Information Architect with usability testing experience for our growing User Experience team, here in sunny Waltham, MA. Check out the job description, and if you think you’ve got the right stuff, contact me directly with your resume (jchausse {at} gmail {dot} com). If I agree, you’ll be in here interviewing before you know it.

Zappos.com Brings Customer to Tears - in a Good Way

This story of genuine customer appreciation is truly astonishing in this day and age.  If only every company were this thoughful (or, more accurately, if only every company empowered their employees to act this thoughtfully…)

Wow.

Prove to the corporate world that this sort of outstanding customer service is to be rewarded.  Go buy shoes from Zappos.com right now.

Roll Your Own Social Network

Originally posted on HHCC.com on March 2nd, 2007

It’s always been a key tenet of advertising that you need to be where the people are. These days that means in online social networks like MySpace, FaceBook, and YouTube. Marketers have already learned this lesson, and are heading to these destination sites in droves. But does your brand have what it takes to take things to the next level? Can your website become a social destination itself?

Social NetworkIf you’d like to give it a try, there are plenty of vendors who want to help you get there. KickApps offers instant gratification in the form of a free ad-supported MySpace/YouTube clone, which you can upgrade to a paid version. Customers include TAG Body Spray and National Lampoon. Vitrue offers a slicker interface, more clearly focused on consumer generated video, but doesn’t offer any free or trial versions. Vitrue powers sites from TBS, Lance Foods and the Cincinatti Bengals. ONEsite rounds out the trio, with solutions ranging from free to $1000/mo. iVillage, ClearChannel, and Sprint head up their roster.

While KickApps, Vitrue, and ONEsite have gained the most commercial momentum, there are countless startups in the space, including People Aggregator, CrowdFactory, and the matter-of-factly named Social Platform and Social Network Server.

Web sites without social content will certainly be the “brochureware” sites of tomorrow, but whether a full-fledged social network is an appropriate add-on for most corporate sites remains to be seen. If you want to give it a try though, there’s clearly no need to go it alone.

Your Greatest Online Marketer is Someone You’ve Never Met

Originally published on HHCC.com on Tuesday, March 6th, 2007

Oh, how the Internet changes everything. The simple idea of happy customers spreading your brand via word of mouth has morphed into people creating entirely new, wildly innovative websites to promote your goods in ways you would have never thought of. Case in point: BrowseGoods.com — a Google Maps-style interface for browsing — and buying — Amazon.com products.

BrowseGoods.comSites like BrowseGoods.com are possible because companies like Amazon have invested time and effort in developing programming APIs that enable anyone with a bit of time and skill to create new ways of finding and interacting with your product offerings. New, programming-free tools like Yahoo Pipes are trying to make the process even easier. So, are you thinking about opening up your site via an API?

Well, ponder this. Worldwide, there are over one billion people who use the Internet. Let’s assume that just one percent of those folks are fans of your brand. Next, let’s assume that just one percent of those people have the skills needed to build a website. Finally, let’s figure one percent of those people have really killer ideas for a new way to sell your stuff online.

That’s 1,000 online marketers with the ideas, skills, and passion to pitch your product in exciting, innovative ways. Now, how many of them are on your payroll? Two? Three? So, should they spend the next six months building two or three really cool marketing sites, or the foundation for 1,000?

Search Wikia - The End of SEO?

Originally published on HHCC.com on Thursday, March 8, 2007

Jimmy WalesWikipedia founder Jimmy Wales is creating a stir in the technology press with his plans to adapt Wikipedia’s “crowdsourcing” techniques to create a collaborative search engine — technically unnamed, but commonly referred to as Search Wikia. Details are sketchy, but presumably it will allow human beings to re-order search results so that the best stuff bubbles to the top — a la Digg.

Should Search Wikia overtake Google, it would completely rewrite the rules of online marketing. Right now, the web is the only medium in which you must create content which impresses machines — your creative ambtions held in check by the tyranny of Search Engine Optimization. With Search Wikia, no machines reviewing your content = no more SEO!

But will Search Wikia actually succeed? Why not, if Wikipedia has done so well?

As James Surowiecki explains in his book, “The Wisdom of Crowds“, the summation of small pieces of knowledge collectively held by a large enough group of people will nearly always converge on an objective truth. Hence, the success of Wikipedia. However, the key phrase here is “objective truth”. Wikipedia deals in truths. There is — theoretically, at least — an ideal answer to “What is a car?” But is there one true answer to “What is the correct ranking of the ten best pages about ‘car repair’?” Of course not. Your personal answer to this question depends upon what kind of car you have and what sort of repairs you’re interested in (and whether you’re looking for how-to advice or a repair shop).

Search Wikia will likely enjoy some degree of success, but just being “human powered” will not cause its search results to leap past Google in relevance. Given a problem with no perfect solution, the conclusions of a well thought out algorithm can easily compete with with the best efforts of human expertise (think Deep Blue).

So, continue to mind your term frequency and keyword densities, SEO will likely remain with us for a long time to come. And if you think about it, if human-powered and computer-powered search can provide pretty much equal results, why not go with the one in which the most ambitious company can work the system to get a leg up — surely that passion should count for something.

The Danger of Design - How Not to Build an Online Community

Originally Posted on HHCC.com on March 12th, 2007

Town HallCraigslist pretty much defines the concept of “online community”. It is also the seventh most visited site on the web, with an employee headcount three orders of magnitude smaller than any other company in the top ten. If you’re trying to build your own online community, and want to take one lesson from Craigslist, it’s this: design does not build community.

That Craigslist has succeeded with a minimalist design is no secret to anyone who’s been around the net for a while. But could Craigslist have done as well if it had a slick, flashy design? Even if you discount practical issues such as load time and usability, the answer is an emphatic no.

The entire concept of “design” runs counter to the idea of community. Well, that’s not entirely true. Literally, design takes many forms - such as usability, universality, and affordance. All of these are important in any creative endeavor. What I’m talking about is — you know, Design — the kind of stuff that evokes such adjectives as “bold”, “edgy”, and “daring”.

Design tells users “this is who we are”, “this is what we believe in”, “this is how we want you to feel about being here” — all valuable messages for web sites looking to sell a product or an idea. But a true community should be deciding these things for themselves.

Think about where community “happens” in real life. It happens in church basements, school gymnasiums, and dilapidated town halls. It does not happen in art museums or casinos. When the venue screams “Look at me! Look at me!” people start paying more attention to it than to themselves, and the community becomes far less authentic.

Community happens when someone says “I matter here - what I do can make an impact”. MySpace succeeds because of its amateurish design, not in spite of it. It succeeds because someone looks at it and says, “I can make something that belongs here”. This is not the feeling you get from a site like MTV.com

So, what should you do when adding community elements to your web site — fire all your Photoshop and CSS gurus and build a Craigslist clone? Absolutely not. If you’re reading this blog, chances are you’ve got something to sell to someone. Your web site needs just the right amount of branding to keep people at least partially focused on that. Craigslist doesn’t need any branding because it’s a community about being a community — it has absolutely no other reason for being. Your site (presumably) does. But your design should subtly nudge your vistors into what you want them to focus on, not beat them over the head with it.

Don’t let this “no design needed” idea fool you into thinking that building an online community is easy — it’s extremely difficult. Especially because it involves skills that marketers tend to find very challenging — the ability to listen and adapt to what your community wants (eBay is extremely skilled at this) and the patience to let your community grow organically. Community requires culture, and culture takes time to develop. Compare the quality of the commentary on Flickr, which grew slowly, to the infantile gibberish found on YouTube, which skyrocketed to success overnight.

If building online community is important to you — and it should be, if you want to remain relevant in 20XX — check your ego at the door and remember that you’re building your brand’s church basement, not its church.

Adobe Apollo - A Real Solution for Advertising-Supported Software?

Originally published on HHCC.com, March 19 2007

Adobe ApolloThings seem to repeatedly come full circle in the Internet world. Flash and Ajax technology brought the power of desktop applications to web pages, and now Adobe has introduced a new technology, called “Apollo“, which brings the power of Flash and Ajax web applications to… the desktop!

Sound silly? Actually, it makes a lot of sense, and it could mean big things for interactive marketing.

While the idea of bringing desktop-like web applications back to the desktop sounds a bit confusing, it’s really a pretty significant development. No matter how “desktop-like” a web application is, there are several limitations that exist (and for good reason):

  • Web applications can’t interact with your file system
  • Web applications are useless when you’re not online
  • Web applications can’t be associated with file types (for example, you can’t double-click a “.doc” file and have Google Docs show up

Apollo will address all these issues and more, including some major development productivity bonuses. Check out their demo of an Apollo-powered eBay application.

OK, since this is an advertising blog, what’s the message to the CMO’s? Well, by removing the typical barriers to web application adoption, Apollo could be the vehicle which finally brings advertising-supported applications to the masses. I’m sure Google is keeping a close eye on it for their Google Apps.

Also, while most web applications are focused on entertainment or socializing, people use desktop applications to really get things done — and they’re always looking for better solutions. Offering them a better way, with your name on it (say, a Timex-branded to-do list, or an NBC-branded video editor) can go a long way toward building brand loyalty.

Ian Rogers is a Badass

Ian Rogers is Yahoo Music’s VP of Product Development, and he has some strong words for the music industry.

I’m here to tell you today that I for one am no longer going to fall into this trap. If the licensing labels offer their content to Yahoo! put more barriers in front of the users, I’m not interested. Do what you feel you need to do for your business, I’ll be polite, say thank you, and decline to sign. I won’t let Yahoo! invest any more money in consumer inconvenience. I will tell Yahoo! to give the money they were going to give me to build awesome media applications to Yahoo! Mail or Answers or some other deserving endeavor. I personally don’t have any more time to give and can’t bear to see any more money spent on pathetic attempts for control instead of building consumer value. Life’s too short. I want to delight consumers, not bum them out.

Amazon offering $0.89 DRM-Free MP3 Downloads

Amazon just started a store offering DRM Free MP3 Downloads for a measly $0.89. Well, some are $0.99, but they’re still cheaper than paying $1.19 for the same tracks at the iTunes store - and they’re encoded at an ear pleasing 256k bit rate. I don’t know what the music biz oligarchs are up to, but enjoy it while it lasts…

Iceberg On Demand

Iceberg On DemandIceberg On Demand is an Irish web startup which will enable users to build Enterprise-class web applications - via a Web 2.0 UI, natch - without writing a line of code. What’s really clever is that they’ll allow you, as a - well, developer’s not the right word, is it? - to sell applications that you have built using the service. The final end user pays a per-seat fee which is presumably to be split with the application’s creator.

This is, without a doubt, a useful tool. But I think what the company will find is a problem of perception. In my experience, “enterprise” software is almost invariably more clunky and awkward than “regular” software, yet it often costs orders of magnitude more. My conclusion: Companies like spending a lot of money on “enterprise” tools. Illogical? Yes, but humans are funny that way. Just as people feel good about themselves when they spend $5 on a bottle of water, companies feel good about themselves when they plunk down a good chunk of change for an “enterprise solution”, when a kid in Croatia could have cooked up a better custom built solution for $150.

Nonetheless, I wish these guys luck. While the blue chips may never bite, the tiny startups who can’t afford to play psychological games with their money, will - intelligently - eat this stuff up.

Apple to Sell DRM-Free Music from EMI

This is huge. Apple and EMI have announced that Apple will begin selling DRM-free tracks from EMI, one of the “big four” record companies. I never saw this coming—at least not this soon. I figured some indie labels might have jumped first, but that would have just been a small baby step—and Steve Jobs isn’t exactly a fan of incremental change. I’m not sure how Jobs pulled it off, but kudos to him.

Now begins a great social experiment. DRM detractors have long claimed that DRM free music will sell better than protected music - the argument being that, thanks to the ubiquity of the Internet, a single unprotected file can spread just as fast as a million copies, so you’re only inconveniencing the “good guys”. Remove the DRM and the convenience factor will convince the good guys to buy more music. I want to believe this is true. I hope this is true. Now we get to find out.

The YouTube of…

It used to be that to get attention, you had to be the “[X] killer”. Now, you have to be “The YouTube of [X]” The following sites were all found via a Google search for “The YouTube of”.

Scribd - The YouTube of Text Documents

SlideShare - The YouTube of PowerPoint

Teapotters - The YouTube of 3D

Swivel - The YouTube of Data

MyToons - The YouTube of Animation

AniBoom - Also The YouTube of Animation (Uh-oh!)

SingShot - The YouTube of Karaoke

Travelistic - The YouTube of Travel

VideoJug - The YouTube of How-To

And of course…

GodTube - The YouTube of Fundamental Christianity, where you can learn to become a Christian clown.

Microsoft’s Plan to Combat Google - Outright Bribery

Microsoft’s new plan to boost its search engine usage is to pay “service credits” to enterprises which “promote” the use of Live Search in their organizations.  Companies will earn $2 to $10 per computer which complies with Microsoft’s demands - including the removal of non-Microsoft IE toolbars, or setting Live Search as its homepage.  Will it work? Perhaps.  This sounds exactly like the kind of thing “An Enterprise” would go for - saving  a few bucks at the expense of letting employees use what work best for them.  Is it pathetic? Yes.

Is Steve Jobs For Real?

Steve Jobs’ much-publicized rant against DRM is certainly bold and newsworthy, but is it sincere? I doubt it. Here’s why. If Steve is being honest about wishing he could sell DRM-free music, there’s a very simple way to prove it:

Actually sell DRM-free music.

Of course, Apple can’t just start selling everything DRM-free, but there are some big name artists who are open it, like The White Stripes, Willie Nelson, Moby, The Pixies. How do I know this? Because they’re already doing it, on eMusic. The albums they’re selling on eMusic are also in the iTunes Store right now. If Apple’s so certain people want to buy DRM-free music (and I’m certainly not questioning that they are), why don’t they open a special section of the iTunes store to sell a selection of DRM-free albums, and prove that point to the big labels?

Until they do that, I’m with the popular consensus that Jobs is just trying to use his Reality Distortion Field to redirect the conversation away from forcing Apple to license their FairPlay DRM system to other online music vendors.

Wondering what I’m doing?

Now that I’ve gotten settled in at Hill Holliday and gotten a sense of where the interactive marketing industry needs a swift kick in the pants, I’m working on a manifesto. Yes, a manifesto. Something that will guide everything I do professionally from here on out, and hopefully something that will change the definition of “Interactive Marketing” forever. A lofty goal? Perhaps. But what other types of goals are worth pursuing? Stay tuned…

YouTube vs. Metacafe - Time to Pay The Piper

Metacafe is a video sharing site, like YouTube, but with a major difference. Content providers are (gasp!) actually paid for uploading popular videos. And we’re not talking chump change, either. They pay out $100 for every 20,000 views. That’s nothing for a video with even the slightest bit of traction. A while ago, I uploaded a funny video my mom sent me to YouTube (mainly just to “bookmark” it), and with zero publicity, it’s had over 6,000 views in less than a year.

Someone on MetaCafe uploaded a video of himself making a nifty origami bird. It’s had over half a million page views and earned “maverick99″ $2,848. If I ever start a video blog, it ain’t gonna be on YouTube.

It’s no secret that YouTube caught on mainly because it was an easy way to find illegally copied copyrighted videos. At that point, the no-payback model was perfectly appropriate. People shouldn’t get paid for piracy. But now that people are actually using YouTube for its intended purpose - distribution of self-made videos, it’s downright exploitative not to start paying the community back (the fact that, Pre-Google, YouTube was earning less than 10 percent of their bandwidth costs alone is not OUR problem).

In today’s entertainment world, small is the new big. Amateurs are the new professionals. PAID consumer generated media is the way of the future. Google had better take heed. YouTube is not invincible. No website is, especially when you don’t respect your community. Just ask Friendster.

Sansa Rhapsody - Backwards Marketing

Sometimes companies are so obsessed with attracting new customers that they don’t realize they’re basically giving their most loyal customers the shaft. I shop at Drugstore.com and I’m constantly coming across coupons for “first time users” only. Hey, thanks for reminding me that you don’t appreciate my continued purchases.

Here’s an even worse example. I’m a huge fan of the online music serivce, Rhapsody. I’ve been a member for years. In partnership with SanDisk, they recently launched a portable music player specifically optimized for use with Rhapsody. I decided to check it out today, and check out the offer: “Includes FREE Rhapsody To Go trial for new members“. Hey, that’s swell, but guess what? The people jazzed about this player are going to be existing Rhapsody members. If you’re in the portable music player business, and your company’s not named after a fruit, you better find your customer niche and give them all the love you can. The Sansa Rhapsody has a crystal clear niche (Rhapsody customers), but Rhapsody has the mistaken impression that the device will sell the service, instead of the more likely reverse.

Why not give existing Rhapsody users a $15 coupon off the device? It’s the same cost as a free month of service for the new guys, and your built in audience won’t feel like they’re getting the shaft.

Blog Fatigue, as explained by Lloyd Dobler

I’m feeling a bit blog/web 2.0 fatigued at the moment. I was planning on writing a long whiny post about it, but instead I’ll put it this way…

“I don’t want to blog anything, aggregate anything, or syndicate anything as a hobby. I don’t want to aggregate anything blogged or syndicated, blog anything aggregated or syndicated, or syndicate anything aggregated, blogged, or syndicated, or tag anything aggregated, blogged, or syndicated. You know, as a hobby. I don’t want to do that.”

You haven’t seen the last of me, but excuse me if I go underground a while as I ponder my role in the blogiverse (or not).