AOL - FROM PATCH TO FULL BODY CAST

Patch, a hyper local division of AOL just announced a course correction that will attempt to hire 8000 unpaid local blog contributors by May 4th. HA!

Patch is quilt work of 800 sites dedicated to local community news. But the cost of paying each of the 800 editors and staff is a losing proposition for AOL.

Arianna Huffington to the rescue! Replicate the HuffPost model! No need to pay for content when they can offer writers what?.....Nothing!

This is a train wreck waiting to happen and yet another example of the folly that has become AOL.

This parting shot from Mediabistro's Fishbowl LA ...

"In other words, if you have any ethical qualms about demanding free content from your writers, better get over them now–or the only thing you’ll have to worry about is the door hitting your ass on the way out."

FACEBOOK "NOSE" BEST

As Facebook grows to a reported 500 million users globally, its privacy policies and the management of information their users post is coming under more intense scrutiny. On the heels of the movie release, Social Network, Facebook announced new tools for its users to manage that information across personal groups of people they "trust".

But things may not be what they seem.

What follows are excerpts from Facebook's commentary ... what they are saying, followed by our interpretation of what they may be thinking.

"We use your information to make your experience better"
Interpretation: We want to know what you've been up to so that we can direct more relevant ads and search results .... so that we can sell you stuff.

"When a group member posts to a group, everyone in that group will receive a notification about that post"
Interpretation: But what your friends do with it we can't control. It's your problem.

"The whole experience is organized around spaces of the people you care most about"
Interpretation: We want to confuse you to the point of exasperation and give up control of your information.

"You can quickly download everything you ever posted on Facebook"
Interpretation: Because we don't want to be responsible for your garbage.

Most comments post on the Huffington Post review were overwhelmingly negative which leads one to assume that there are many more users abandoning the social network than meets the eye.

PUBLISHERS BATTLE FOR SURVIVAL

As digital publishers came together at a panel hosted by OMMA's PUBLISH conference today, trying to desperately figure out how to migrate to a digital landscape, I could not help but wonder.

What if offline publishing properties that are both non-native to the online environment and not time sensitive never migrated to the online world. Would they be better off today from a revenue perspective?

For those publishers that did make the leap (and made many mistakes along the way) do they regret the move? Chances are they would not admit they would "go back to the future".

The delicate balance between the reader and his/her engagement with a publication is likely not interrupted by the absence of a digital version. Many pubs missed the benefit they provide their offline readers .... the benefit of an exclusive interaction that is not available online. Unfortunately they followed the crowd.

This theory would not hold for news sites that are time sensitive. The internet created a "want it now, want it fast" culture that dictates the need for speed. They belong online .... as do native digital brands the likes of eBay, Monster, Huffington Post and Facebook.

As the traditional publishers scrambled to "go digital" with no vision for a sound business model, they gave away their content and are now waging an epic battle for their survival.

Comments welcome.

A PAD WITHOUT A PENCIL

As Apple releases its latest "magical" device, a closer look reveals a host of shortcomings that may have Apple going back to the drawing pad.

The Huffington Post recently released "The Nine Worst Things About The iPad".

1-It's name. Sounds like a tampon product
2-No Multi-tasking
3-No Camera
4-No USB port
5-The AT&T deal. Major complaints concerning coverage.
6-No Flash. Forget about Online gaming, ESPN or Disney.
7-Its Screen. LED is harsh on the eyes and drains batteries faster than OLED.
8-The Price. For a limited use machine it's overpriced at $499 and up.
9-Closed App Store. Must pass Apple approval process that limits certain apps.
10-Every pad needs a pencil.

The video that follows puts it best. Hilarious. But oh so true!

NEWSPAPERS -- A HARD HABIT TO BREAK

 











For the last few years, newspapers have borne the brunt of declining fortunes while their circulation erodes as quickly as the sands on a beach facing a tsunami. But the reality is far from the perception that newspapers will disappear.

A recent study by Scarborough Research points to a healthy print/internet readership that will remain a media force for some time to come.  Aggregation news sites that include the likes of Drudge and the Huffington Post, while performing well, are not hurting strong newspaper options.

Among results from the study ....

74% of the adult population read newspapers in print or online

79% of white collar adults read newspapers in print or online

82% with household incomes over $100k read newspapers in print or online

84% of college grads read newspapers in print or online each week

While circulation drops are real, audience readership has not registered the same declines and is holding up well in spite of increased media fragmentation.

The longer term solution for the survival of newspapers appears to be a business model that fully embraces the online potential with a web-first publishing format.

The multi-cultural publishing base is also benefiting from a strong reader loyalty -- especially among the Latino community, 49 million strong, representing over a trillion dollars in purchasing power and growing at a rapid pace.

Spanish language newspapers enjoy 50% more readers per copy than mainstream English-language papers according to the National Association of Hispanic Publications. Contrary to current consciousness, Hispanic youths are loyal to their Spanish-language papers preferring entertainment and political sections. 

Marketers take notice ....It is estimated that 82% of Latino's read and share their paper with a least one other person.

Not too shabby for what is perceived to be a declining market.

HOW NEWS COMPANIES WILL PROSPER

The controversy and sparing between newspaper companies and aggregation sites was recently highlighted in an editorial by Arianna Huffington on her site The Huffington Post. Taking aim at Rupert Murdoch's call for pay walls, she handily convinced her audience (albeit a web audience) that pay walls are not the answer.

Maintaining journalistic excellence while making a profit is becoming increasingly impossible for news companies that cling to a print-only business model.

There is hope.

At today's gathering at the World Newspaper Congress in Hyderabad, India, over 1500 participants heard how a news and information company in the U.S. is transforming itself to become a digital savvy operation that turns the old print-only model on its ear while projecting record profits. This company successfully reverse-engineered the production and, importantly, the distribution of content looking to the web first and print last.

John Paton, Chairman and CEO at ImpreMedia, the largest Hispanic News and Information company in the U.S., passionate about journalism, the communities he serves and his dedicated employees, provided his audience with a road map for what appears to be a successful embrace of the digital landscape before us.

His speech can be read here. I urge you to read it.

In closing, Mr. Paton also announced new initiatives for hyperlocal media efforts extending to local communities in New York and LA via community blogging partnerships. ImpreMedia will establish E-Journalism Media Labs and shepherd key community bloggers to address the importance of hyperlocal journalism.

SELF REGULATION - QUESTIONABLE ETHICS

A U.S. senate hearing today could put in jeopardy the issue of self regulation of consumer privacy. The press release by the U.S. Senate Committee on Commerce, Science and Transportation can be found here.

In a nutshell, the practice of post transaction marketing has impacted millions of consumers with what is considered to be a "scam" engaged in by over 450 websites and their rev-share partners, Affinion, Vertrue and Webloyalty.

The committee is investigating over 1.4 billion dollars in recurring revenues charged by these companies and shared with their partner sites. Shockingly, some of the most respected companies are on the list of offenders. The lead story by the Huffington Post can be found here along with a list of the top offenders.

In the face of FTC hearings next month on the issue of privacy concerns and self regulation by the industry, these actions do nothing to instill consumer confidence.

How can we possibly self regulate our own when major players participate in questionable practices?

OUR TOWN

A recent Huffington Post headline declared a thirty percent unemployment rate in a Michigan town dominated by one large employer that was hit hard by the economic downturn.

The folks in these rural towns are hurting badly. As plants close and jobs are lost the local economies lose the momentum to keep going. Purchasing power drops, inventories for everything imaginable become restricted, transportation slows. The ripple effect of thousands of small towns shakes the core of our economy.

These small towns, the backbone of the American economy, ripped apart and dismantled by Wall Street behemoths that could care less about their plight will eventually make a comeback.

The economy will survive and we will have learned many lessons. Lessons about trust, integrity and compassion. Hopefully, the failings of previous administrations to protect the flock will be corrected. We are a resilient people.

Our own town, that of the ad community, has also been hit hard. I have seen many jobs disappear as smart, valuable people become discouraged and move on to other career choices. Yet I am confident that we will see a reversal of fortunes and encourage those of us in the industry to hang on.

The words to the song below, sung by James Taylor, say it best.