Local Andy

Local Citizen and Social Media Revenue Pioneer 

The home of the Sting gets Stung

Sports, politics, this story has it all in a very funny look at last week:

Admit It, Chicago: that Was a Great Sting

 

Artie: He's catching hell from Glenn Beck and other right-wing nuts. But with them, he's always damned if he does and damned if he doesn't, ain'a?

 

Frank: Absolutely. And I'm proud to say I voted for Obama. But I think pandering to the IOC was improper, regardless of the outcome. The Associated Press says it probably cost more than a million bucks for the Air Force One flights, security and whatever other expenses. That's our money, and I didn't want it spent that way—any more than I wanted it spent on a trip to New York to josh with David Letterman. This stuff is not what the nation's leader should be doing.

 

Artie: He was acting more like the president of Chicago’s Chamber of Commerce.

 

Frank: There was talk about the Olympics boosting the whole country, but how? I'm an American and it wouldn't have changed my life one bit. I don't care where the Olympics are, as long as they're on my TV screen.

 

Artie: I'm glad Rio won because I sure don't want Al Qaeda 90 miles from here. You know they'd be coming in '16 if the target was Chicago.

 

Frank: Like all Olympic bidders, Chicago expected an economic boom. But cities like Montreal and Athens have found that in the long run, the Games are a bust. Costs always go sky high and the public ultimately gets stuck for the deficits.

 

Artie: Chicago had some venues in place, like the United Center and Soldier Field. But during the Games there'd still be baseball with the Cubs and White Sox, and maybe football season starting up. Think about the traffic. Cripes, you can't drive around Chicago on a regular day!

 

Frank: No wonder the public was, to say the least, divided on the Olympics, according to all the polls. But Chicago's loss was also Wisconsin's, sort of. The Madison area would have been the venue for many of the cycling events.

 

Artie: We had the last Summer Games in Beijing. Why have even part of 'em in another Communist territory?

 

Frank: Are you channeling Glenn Beck?

 

Artie: Hey, the Badgers don't have red as their main color by accident, mister.

 

Frank: In the end, I think, the Rio choice was based on giving the Games to South America for the first time, plus a little bit of "stick it to America." And let's never forget the self-interest of IOC members; as I heard one pundit say, "They'd rather go to Rio."

 

Artie: Who wouldn't want to samba with those babes you see at Carnival, their version of Mardi Gras? And think of it, Mr. Beach Volleyball Fan—Blame It on Rio came out 25 years ago, and Ipanema looked pretty uninhibited then. God knows how wild that competition will be in '16!

 

Round 1 Is Favre’s

Frank: A tight deadline keeps us from commenting much on the Packers' loss at Minnesota, and I guess from your standpoint that's fine.

Artie: You betcha. The less said about that offensive line the better.

 

Frank: Still, for all the negatives—eight sacks including a safety, plus a fumble and interception while they were driving toward scores, plus a dropped fourth-down pass in the end zone—the margin was just 30-23.

 

Artie: I thought the key would be stopping Adrian Peterson, and they pretty much did. But they still lost.

 

Frank: The biggest reason, as tough as it might be for some folks to take, was that No. 4 in purple.

 

Artie: Brett played like the Favre of old, as we heard constantly from Ron Jaworski and Jon Gruden. But a lot of that was because the Packers never, ever put any pressure on him.

 

Frank: That may have had something to do with the schemes they used to stop Peterson. But yeah, the difference in quarterback protection was glaring.

 

Artie: Remember a couple of years ago when Favre was telling Ted Thompson, "Get me more weapons"? Aaron Rodgers is gonna be begging Thompson, "Get me a line!"

 

Frank: Rodgers gets a chance with the bye week to rest up from this pounding. And with games against Detroit and Cleveland after that, the Packers should be 4-2 when they see Favre again on Nov. 1 at Lambeau Field.

 

Artie: He won't feel as comfortable then.

 

Better Late…

Frank: Chalk up another victory for the Observers! Oregon football coach Chip Kelly has changed his mind and given LeGarrette Blount a chance to play again this season.

 

Artie: That's the running back who punched a Boise State guy after the season opener, ain'a?

 

Frank: And was suspended for the rest of the season by Kelly—which we said was excessive.

 

Artie: Mainly because the Boise guy started it by taunting Blount and whacking him on the shoulder pad. And Boise coach Chris Petersen didn't punish him.

 

Frank: Last week Kelly said Blount might return if he meets certain goals, including academic.

 

Artie: Kelly will get some raised eyebrows for backtracking, but he can't... DUCK that.

 

Frank: Pun duly noted. Some might suspect he wants Blount's help for a possible run at the Pac-10 title.

 

Artie: Or even the national title. Since the Boise loss, the Ducks are 4-0. Before the season some folks said they could knock off USC in the conference, and they play the Trojans at home on Halloween night.

 

Frank: Kelly says Blount can't return until after Nov. 7 at the earliest. That would give him three regular-season games plus a bowl.

 

Artie: If they finish with just the one loss to Boise, that bowl could be the BCS champ-een-ship game.

 

Frank: Maybe even a rematch with Boise, which is unbeaten.

 

Artie: I'd love that. It would screw up the BCS system big-time!

 

Frank: As long as we're dreaming, why not have Bucky Badger in the title game? UW is 5-0, and with a little luck Saturday at Ohio State...

 

Artie: Why not? Until you're defeated, you're undefeated!

 

Frank: Readers, you can't get wisdom like that just anywhere.


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Bernstein Ad Tracker, Releases Report

"There's a Turn, But Will There Be a U-Turn?" which is a bottoms-up analysis of quarterly U.S. advertising trends using publicly reported, quarterly financial results.

Highlights of the report include:

* Q2 U.S. advertising growth was -14.0%, 190 bps better than the decline in 1Q and the first sequential acceleration in quarterly growth since 1Q:08. Excluding Online, growth in traditional media advertising declined by -16.5%, 300 bps better than the decline in Q1. According to the report, Q1’09 was the trough in advertising growth.

* The sectors that drove the sequential improvement in advertising growth were Retail, Media & Entertainment, Telecom, and Government/Political. 17 out of 19 industry sectors reduced advertising spending year-on-year in Q2. The 2 industries that increased advertising were Telecom (+17%) and Restaurants (+4%). Telecom advertising growth in the second quarter accelerated to an astonishing 17.4% compared to 4.0% in the Q1. Telecom alone accounted for over 60% of the sequential improvement in growth. The biggest beneficiaries of the increase in Telecom advertising in the Q2 were Display Internet and Broadcast Networks.

* In terms of contribution to the Q2 decline, Newspapers led the way, accounting for 27% of the total decline, followed by TV Stations (18%), Radio (17%) and Online (9%). Cable Networks posted the smallest decline in the second quarter, at -3.8%, followed by Broadcast Networks at -4.6% and Online at -5.5%. Only 3 out of the 32 companies in the Ad Tracker posted positive growth in the second quarter: Google (+3.5%), Discovery (+0.7%) and National Cinemedia (+11.6%).

* The declines in local advertising (e.g., TV Stations, Radio Stations, Newspapers) continue to outpace the declines in national advertising. Local advertising declined by -23.3% in Q2 compared to the national advertising decline of -6.3%. Local advertising has not posted positive growth since Q4’06, and this is only the third quarter that national advertising had declined – in sync with the recession.

Bernstein Research

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ReachLocal Grossed $147 Million

Thanks once again to Peter Krasilovsky for some excellent analysis on the local space:

ReachLocal Grossed $147 Million in 2008; Projects ‘09 Growth

ReachLoca corporate_logo
One of the big q's in local has been how well ReachLocal is doing. The SMB online advertising consultant was reportedly valued at $305 million after an October 2007 investment round. While ReachLocal says that number is “inaccurate,” the company’s ultimate success – still undetermined — would have important implications on the future of small business marketing.


At this point, the company has expanded rapidly to 38 offices in the U.S., Canada, Australia (in 2007) and the U.K. (in late 2008). It has 800 employees, including 500 sales people; and it has added display to its search offerings.


But we’ve also heard reports of scary levels of churn, both among customers and salespeople – something else that the company says is inaccurate. While additional information isn’t provided on churn, a spokesman says its numbers are well south of the 60 percent+ levels cited in a recent report.


Read the rest of the article and other great posts on the Local Onliner....

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Very interesting data points on Twitter

"The problem with most analysis on Twitter," says Rohit Bhargava in a post at the Influential Marketing Blog, "is that it is limited by the minimal amount of data that Twitter collects." He found some useful information, however, in a comprehensive eport on Twitter usage recently released by Sysomos. Here are a few of the key takeaways Bhargava cites:

 

  • More than 20% of Twitter accounts are empty placeholders. In other words, a fifth of Twitter's registered users have never posted a single tweet. According to Bhargava, they've likely claimed a username for later use, or signed up and never followed through.
  • The magic number for followers is 150. "In a particularly interesting data point from the survey," he says, "Sysomos found that Twitter users tended to 'follow back' all their followers up until about 150 connections. Then the reciprocation rate fell off dramatically."
  • A slight 5% of users generate 75% of the activity. "A steep curve of a small minority of actively engaged content creators generating most of the activity on a site is common among social networks," notes Bhargava, "but it is steeper and more pronounced on Twitter."
  • Weekly activity peaks on Tuesday. The next most active days are Wednesday and Friday.

 

The Po!nt: You need data. According to Bhargava, the Sysomos report and others like it can help you and your brand better understand how to make the most of Twitter.

 

Source: Influential Marketing. Click here for the full post.


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Twitter Takin' Heat

Twitter isn't just in the news these days -- they are the news.  In the midst of an attack that overwhelmed Twitter today, it seems as though everybody is racing to adopt policies to address the phenomenon.  Here are a few examples:

Twitter banned by Marines, NFLThis week, two major organizations have made headlines by banning social networking in one way or another. The United States Marines have issued a direct order from the top that all social media is banned on Marine networks and computer devices for a period of one year. At the same time, the NFL has banned players from using Twitter.

Social media hasn’t been banned by all branches of the military. The United States Army has officially embraced Twitter as a means of pseudo-public relations and microblogging the story of their efforts in Afghanistan.

 

That said, perhaps it should be banned. There have been a number of high profile leaks or breaches of sensitive information via social networking. In February of this year Congressman Pete Hoekstra (R-MI) tweeted sensitive information regarding his movements while in Iraq including “Moved into green zone by helicopter Iraqi flag now over palace. Headed to new US embassy Appears calmer less chaotic than previous here [sic].”

 

It doesn’t even have to be the individual in question posting the information. A more recent leak occurred when the wife of the head of Britain’s MI6 foreign intelligence service posted details about where they live and work, who their friends are, where they go on vacation, and other sensitive information on her Facebook page.

 

Contrast those violations of confidential and national security type information with whether or not NFL football players are allowed to tweet from a locker room and it seems like a silly comparison. The justification from the NFL is that players may speak too openly about the conflicts and drama that go on in the locker room or leak injury information that the team would rather their opponents not be aware of.

II.   From WebProNews:  "ESPN To Employees:  Only Tweet About ESPN"

UPDATE: ESPN has responded to the rumored Twitter policy, by releasing their "ADDITIONAL GUIDELINES FOR SOCIAL NETWORKING"

"ESPN regards social networks such as message boards, conversation pages and other forms of social networking such as Facebook and Twitter as important new forms of content. As such, we expect to hold all talent who participate in social networking to the same standards we hold for interaction with our audiences across TV, radio and our digital platforms. This applies to all ESPN Talent, anchors, play by play, hosts, analysts, commentators, reporters and writers who participate in any form of personal social networking that contain sports related content.

ESPN Digital Media is currently building and testing modules designed to publish Twitter and Facebook entries simultaneously on ESPN.com, SportsCenter.com, Page 2, ESPN Profile pages and other similar pages across our web site and mobile platforms. The plan is to fully deploy these modules this fall."

The next time ESPN makes a policy change for their employees, they need to be careful with the wording to avoid this type of media coverage.

ORIGINAL ARTICLE: A rumor has begun floating around tonight that ESPN has all but ended employee tweeting - unless it serves ESPN. But, what does this mean exactly? Are ESPN employees suppose to become mindless robots who only talk about ESPN, with no mention of their pesonal lives?

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Are we in a Social Media bubble?

I love this post because it reminds me of something Greg Stuart used to say during the very early days at cars.com:  "Is it a planet or a comet."  Chasing after the exact right way to use Twitter strategically is the wrong approach.  Figuring out your social media strategy is as far as you need to be today.

Are we in a Social Media bubble?

Social-media-bubbleYou may not agree with this but you can't ignore it either. A recent issue of Media Life lays out a compelling case making the current enthusiasm for social media sound a lot like the "irrational exuberance" that led to the dot com bubble crash of 2001.

Consider:

"The fact is, it's a good bet these social networking sites will never figure out a workable business model because there may not be one. On the internet, it's accepted faith that if you build traffic, revenue will follow, typically from advertising.

But it simply may not apply to social networking sites such as MySpace, Twitter and Facebook.

That's for a reason that makes perfect sense on the face of it. Social networking sites are about people communicating with one another and sharing information. It's not a format that's suited for ad messages. In that environment, advertising becomes social interference, in some ways akin to eavesdropping, and it has the potential to backfire.

Why should we know this already? Because of the telephone.

Telephones have been around for more than 100 years, and yet despite numerous attempts, Americans have resisted attempts to put advertising on phones, even when the phone service was offered for free. Note too the rising public protest over telephone marketing, which eventually led to the federal do-not-call program several years ago.

One might argue that over time internet users will give in and accept advertising on their social networking sites. One might also reason that over time hell will indeed freeze over and Canada will indeed run dry. But it is the sort of bet anyone in their right mind would place billions on? No.

There are several lessons to be drawn from this.

One is that where big money in involved--call it greed--our inability to remember lessons of the past can be mind-numbing.

Another is that after all these years, we still don't fully appreciate how different and unique a medium the internet really is. We assume that because advertising works in some environments, it works in all. And it doesn't."

Agree or not, economic bubbles happen. One could happen again.    


Read the article, "Listen for the pop of social media" in Media Life 

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GrowthSpur has a strategy to help business

growthspur-logo-sm

Backfence.com founder and fellow alum Mark Potts launches new service for local sites.  Best of luck, Mark.

Here's more on the story from Business Week: 

Taming the Web for Local Advertisers

GrowthSpur has a strategy to help business connect with fragmented audiences

When executives talk about media fragmentation, they often mean national media: myriad cable channels splitting off audiences from declining broadcast networks and consumers increasingly drawn to offerings online and on their phones—Facebook, YouTube (GOOG), blah blah blah. But such fragmentation is, if anything, more acute at the local level. The same competitive troubles affect the established TV and radio players, and the city newspaper is likely readying its application for the endangered species list. Or it's already beginning its slow fade: In mid-July, the Ann Arbor News ceased daily publication, though a smaller-staffed Web site and a twice-weekly print product will remain.

If you're an advertiser, this leaves a hole in the market. The newspaper, one crucial way to get a message to lots of consumers, is shrunken or gone. Sure, a zillion local blogs have popped up; some of them have real value. But the thing is, there's a zillion of them, and few have followings of any size, so you have to amalgamate ad buys across 10 or 15 blogs to get anything resembling a decent audience. Buying ads on one neighborhood's best little blog might leave much of a retail outlet's market uncovered. And buying ads on such blogs often means dealing with one- or two-person operations run by people who might be good at making sentences but who know little about business. "They are bloggers, not salespeople. They have other jobs," says Andrea Kerr Redniss, senior vice-president at media-buying agency Optimedia. "Wrangling those people together is horrendous."

 

All of which helps explain why so much advertising remains concentrated in traditional outlets and why so few, if any, independent local online ventures end up knee-deep in ad dollars. Many fail. Mark Potts, who knows from unsuccessful local online ventures—his Backfence.com, a network of community news sites, went under in 2007—is trying to erect a superstructure that will help advertisers and content sites alike make sense of the new landscape. His new company, GrowthSpur, will drape an ad network around the chaosphere of local online markets. Its networks will allow advertisers, local or national, to buy ads from sales reps across a wide array of sites, choosing among them (yes to the local parenting blog, no to the local beer-geek site) to assemble ad buys in a new and more painless fashion. For an undisclosed cut of ad revenues, GrowthSpur will string a bunch of sites into a network and automate the buying and selling of ads across said network. It will also teach inexperienced bloggers the finer points of selling ads.

Read more in Business Week

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VVM Getting Aggressive Online

The conventional wisdom is that alternative weeklies have their best days behind them.  But that’s clearly not the position of Village Voice Media, which owns 15 titles reaching about ¼ of the 7.6 million alt weekly readers in the U.S.

 

President and COO Scott Tobias notes that VVM has aggressively moved online in the last 2.5 years. Online currently represents 20 percent of the company’s revenue. Title revenue is complemented by revenue from national features (BackPage.com, which is claimed as the largest classifieds site after Craig’s List; and Likeme, a ratings and review site) and networks (Voice Local Network and Ruxton Media Network, the latter of which will soon be rebranded ).

 

At the local level, the company’s especially zeroed in on breaking out VVM’s vertical strengths, particularly in restaurants, music, arts and calendars. “We are the number one in music page views in all of our markets,” says Tobias. “We’re number 1 or 2 in food.”

 

Unlike daily newspapers, “we do just a few things and we do them very well,” he says. Everything is tailored around the core 18-34 year old demographic. Tobias adds that vertical strengths should pick up as new widgets are applied that direct traffic directly to the individual verticals.

 

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We are diminished by his passing

Can objective journalism endure, after Cronkite?

Editor's note: Larry's thoughts on Walter Cronkite provide us an opportunity to talk about what journalism is, and might be, in the Internet era. I'll follow Larry's piece with a comment of my own, and I invite you to do the same.

As a journalism professor, the death of Walter Cronkite is a reminder of what journalism was and may never be again.

When my college students ask me who I think the best journalists in the business were, my first answer would always be Walter Cronkite. Like most young people, most of my students tend to get their news from local television, the Internet, Jon Stewart and Stephen Colbert. Most of them do not read newspapers. Very few of them were familiar with Cronkite.

"Walter Cronkite was and always will be the gold standard," ABC News anchor Charles Gibson told the Associated Press. "His objectivity, his evenhandedness, his news judgment are all great examples."

Walter Cronkite was everything a journalist was supposed to be. He was truly fair and balanced; not in the Fox News sense. He was thorough and prepared and he asked the tough questions that needed to be asked of politicians and government officials, whether they were liberal, conservative, Democrat or Republican.

Back in 1972, Cronkite was voted as the most trusted person in America. Since then, the public's trust of journalists has eroded over the years due to various scandals and controversies involving plagiarism and fabrication, including Jayson Blair, Steven Glass, Janet Cooke, Jack Kelley, the emergence of doctoring photos through Photoshop, and the 60 Minutes' use of an allegedly forged document.

More from Online Journalism Review Here...http://www.ojr.org/ojr/people/larryLTatkins/200907/1763/

 

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Green Machines, CBs, Tandy - 1979

 
Thanks to Steve Rubel for turning me onto Gizmodo's homage to all things 1979.
 
Speak and Spell?  8-track?  Walkman's the size of laptops?  Sweet.

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