Context for the Great Debate
In today’s landscape where brand communications are becoming increasingly globalized due to waning digital boundaries, the issue of whether to approach social media via global or local programs (particularly with regards to Facebook fan pages) has recently plagued brands working towards defining an effective social strategy.
Beginning in March, Facebook has started testing ‘Real-Time’ advertising with 1% of its user base; if you do the math that’s a survey of 6M people. Users are immediately served relevant messages based what they post to their profiles. Desperately in need of a Starbucks Latte? Excited to be a first time home buyer? Just finished delivering your second child? You might just be one click away from a deal, furniture store around the corner, or book about raising multiple children.
Since the early days of the commercial Internet, publishers have struggled to balance the need to monetize their assets with the Web’s insatiable appetite for free content. Media owners have experimented with models ranging from advertising-funded free editions to various subscription-based initiatives; all of have tried to balance the need for income with advertisers demands for sufficient reach to justify spend. With this historical context in mind the New York Times finally announced their new online pay-model this week.
Last week Warner Bros Entertainment announced that it will begin renting and ultimately selling films through Facebook. The announcement is a first from a movie studio and marks a major new initiative by Facebook to further monetize its rapidly growing social network. Furthermore, the deal represents an escalating battle amongst various brands to become the film and TV distribution companies of the future.
More and more publishers are creating new or migrating existing offline publications to emerging online platforms, particularly tablets and mobile. Murdoch’s new The Daily is a prime example. As a consequence, both Apple and Google are competing heavily to convince publishers that their platforms, user experiences, and advertising models are the most commercially viable propositions. Last week Apple and Google raised the stakes by announcing two different “one-click subscription models” for publishers, with the key difference being the amount each party will get for each subscription sold.
Microsoft and Nokia announced a strategic alliance that will see the two companies come together to create a global ecosystem in the mobile space. In short, Nokia will be transitioning to Windows Phone as its main operating platform and as part of a broad strategic alliance with Microsoft, ushering in a raft of new and engaging experiences for both consumers and advertisers. The change is rumoured to sideline both Meego and Symbian technology platforms over time.
Facebook recently announced some major enhancements to its brand fan pages. Overall the changes fall into two areas: a) communication to/from the brand and b) general user-interface/page layout changes. In general, the changes will make brand fan pages look and behave a lot more like the new user profile pages recently launched to great fanfare. The new brand page features can be activated today or at a later date. However, all brand fan pages will be switched to the new layout on a “forced” March 10 changeover.