Online Journalism News
'How online publishers can rival Google'
This is an edited excerpt from Matthew Buckland's original post 'Big Idea: How online publishers can rival Google' which appeared on his blog:
Quite sometime ago I did a rather entrepreneurial proposal to the World Association of Newspapers
(WAN) about a new, non-profit industry-focused search engine and
advertising network to rival Google. I know what you're thinking, apart
from the general nuttiness of the idea itself: I must be crazy
approaching a 'newspaper' body? But the idea around approaching an
organisation such as WAN and others, was that they're important
umbrella industry bodies for worldwide media, both online and offline.
To put it plainly: they have the network. (They're
also bit more than about newspapers these days and rather about media
companies - if only this would reflect in their name too).
While there was interest from WAN, the organisation felt the plan a
bit too ambitious for them. A pity. My personal view is that I think
there should be a more proactive stance emanating from the industry,
lead by a body or members if it's to stay relevant and provide value for
online and offline users. I also think it should start co-ordinating
with one voice and strategy. It's no easy task, but possible under the
auspices of a respected, legitimised umbrella body. I think this is a
way the publishing industry and other industries could rival Google by
creating a differentiated offering.
It would be a way industries - any industry with some co-ordination
and umbrella body - could rival Google. The idea is that industries and
organisations (such as online publishers and general media) would form
counter networks, to counter the great, big Google network.
This media network, of course, would only be undertaken in the spirit of creating competition, which would result in diverse and differentiated products for users, resulting in a richer user experience. It wouldn't be to explicitly 'beat' Google, but a way to secure a foothold in new markets.
The big idea: Create new media-centric search and advertising network
- Transparent commissions: Commission structures (i.e. what is paid
to advertisers, WAN and the publisher) should be transparent, with
between 70-90 per cent of the revenues redeemed to publishers. It's important
to be clear that the lion's share of revenue generated is transferred
to publishers. This is not a venture for profit.
- Profit-making, yet non-profit: Another important way to
differentiate the new offering from Google and create a favourable
image for the project in publishers' minds and get buy in is to
emphasise that the profits are for the industry and for the individual
publishers. Unlike Google, the primary aim is not to make profits off
this programme, but to ensure its members make the bulk of profits and
earn the revenue. So the project would be non-profit, but its
objectives would be to make profits for the members, and the industry.
This would contrast against for-profit ventures, which would seem less
palatable in the face this nobler initiative.
- Quality search engine: Create a search engine that would search
through content only from original, quality content providers that
follow stringent rules, upholding the values and principles of
journalism (this includes all sizes of publishers, including quality
blogs that adhere to the principles and become members). The search
would thus differentiate itself as a different kind of search product
to Google's search, but a smaller search of quality content from
publishers. It would be a mistake to go head-to-head with Google, but
rather to provide a product that is differentiated. (Possibly this
could also lead to the creation of a quality news aggregator).
- The main emphasis would be that this is a 'quality search' through 'quality content'. The emphasis on 'quality' is key here: the digital
age is increasingly bringing content clutter and information overload
to the world. It's only going to get worse as content distribution and
production gets cheaper and faster as a result of the internet.
- Contrary to the doomsayers, media brands are in a good position in
this environment, as they are a guarantor of quality in this
increasingly cluttered world. There is also another benefit here in
that it would be an economical and prudent option to create a smaller,
focused search as a start-up strategy.
- I think the world would buy into the idea and see the advantages of a more niche, differentiated search product.
- Despite the issues the publishing industry has with Google News as
an aggregator, the concept is a good one and here to stay. So rather
than resisting against such a concept, the industry should take control
and create its own news aggregator, owned by the industry. As part of
the deal, publishers would aggressively market the aggregator.
- Worldwide advertising: Advertising would be localised/geo-targeted and also on a worldwide basis.
- Do-it-yourself, minimalist interface: The interface publishers and
other stakeholders would use for signing up and administering the new
advertising programme would be minimalist and easy to use, much like
Google's Adsense interface. It will result in low admin and generally
help to keep costs down.
- Publishers don't need to abandon Google: It would be emphasised
that the new advertising model would be tested out by online publishers
in conjuction with their current advertising programmes (such as
Google's Adsense), not to the exclusion of them. Many publishers have
good relationships with Google and are securing lucrative revenue
streams via its advertising programmes - and may be reluctant to tamper
with this.
Why I think it would work
- It's non-profit, yet profit-making for individual members, therefore simpler to run.
- It's a closed, quality search, therefore manageable, and not too ambitious.
- Market sentiment is that Google needs a competitor: Few publishers
disagree that it is unhealthy to have such a dominant player. The
market would react favourably (and critically) to such a move, but it
will be seen worldwide as a much-needed thing.
- Advertising agencies and companies: They would buy into the
project as publishers are in a position to influence their own clients
and stakeholders about this new initiative, emphasising that it is a
publisher initiative, custom-made for publisher sites. Publishers are
more likely to push the model as there will be a greater feeling of
ownership and buy-in to the new offering. (Unlike Google).
- Publishers would write about and advertise the initiative: Publishers would write about the initiative and advertise it,
generating interest and publicity.
- Smaller publishers would embrace the concept: It provides smaller
players with more transparency and a greater revenue share on the new
advertising programme. It's the small publishers (e.g. smaller sites and
smaller blogs) in particular that may feel 'bullied'. It would also
mean that advertising revenue would not flow out of countries to one
dominant company - as is the case with Google's Adsense programmes.
- Advertisers and publishers: They will perceive this new
advertising model to be a more sustainable and positive business,
because it will keep revenue within the publishing industry, thereby
growing the industry – as opposed to flowing to one company, e.g. Google.
Conclusion
There is no doubt that this is an ambitious plan, possibly a bit crazy
too. Publishers need to control their destinies by innovating and
creating new models that support the interests of their organisations
and industry. WAN, despite its 'slow-mover' status, is in a position
to lead the worldwide media industry and do things differently.
There is no doubt that publishers are losing power to search
behemoths like Google, which are eating away at their main revenue
streams. It's unlikely this will change in the future, so publishers
should be proactive in creating their own rival models to compete with
Google and grab market share for themselves.
It is argued in this proposal that the industry via its industry
bodies are in an ideal position to pioneer such a plan, using their
reputation, networks, leverage and influence worldwide.
I think it would work.
Matthew Buckland is general manager of publishing and social media at 24.com. This post can be read in full at his blog MatthewBuckland.com.
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