Tags containing: "voice"

The top 8 trends for publishers in 2018

December 14, 2017 Mark Glaser, Founder and Publisher – MediaShift

We live in interesting times. And they will only get more interesting if the past year is any guide to what’s ahead. With Donald Trump in office and “fake news” becoming the new “f-word,” there’s a lot to mull in the coming year for publishers. Beyond politics, 2017 was a tough year for those who pivoted to video without a solid strategy, and the “duopoly” of Facebook and Google gobbled up more digital advertising, even as they helped publishers on other fronts. And newer technologies like artificial intelligence and blockchain are going from “good to know” to “need to know.”

Now that the year is coming to an end, let’s look ahead at how the past year’s biggest trends will influence the digital media business in the year ahead.

1. Power of Subscriptions as Trump Bump Continues

By the end of 2016, increased readership and donations to the likes of the New York Times and ProPublica suggested that partisan politics and the non-stop news cycle, for all its distress, were at least helping the bottom line of news publishers. While some subscription-driven and membership-based publications saw a leveling off of that by the middle of the year, it seems helpful to take a macroscopic view of this trend rather than a quick snapshot: The New York Times recently announced that it has more than 3.5 million subscriptions and more than 130 million monthly readers. That’s more than double the audience it had two years prior. While the Gray Lady’s boost can’t speak for everyone — local news still struggles, for example — it suggests that audiences are becoming more used to the fact that they ought to pay for premium content. With AI also becoming more efficient, and Google and Facebook both making efforts to support subscriptions, expect that technological help, including better personalized targeting and performance measuring, will help boost subscriptions and donations even more.

2. Pivot to Reality

For all the hype surrounding pivoting to video, not everyone who invested in the strategy saw its benefits. Perhaps most jarring was Mashable’s fire sale for $50 million. Given Mashable’s $250 million valuation just last year, the sale price serves as a dire warning to other digital darlings. Mashable is now poised to lay off more employees (last year, investment in video justified a round of high-profile layoffs) as it refocuses its brand yet again. BuzzFeed too, has announced layoffs of about 100 employees after revealing it missed its 2017 revenue targets. Vice Media is also expected to miss its revenue target by more than $800 million this year. CNN Digital announced 2017 brought in its highest revenues ever at $370 million —but it faces a $20 million budget shortfall. And let’s not forget the abrupt closure of DNAInfo and Gothamist.

Factoring in that Google and Facebook continue to gobble up digital advertising revenue, many publishers need to diversify revenue streams fast. Digital darlings like BuzzFeed and Vice, not to mention smaller publishers, will have to think beyond native ads. Perhaps the best strategy, as The Atlantic’s Derek Thompson put it, is not to pivot to video or pivot to VC money, but to pivot to readers.

3. A Shifting Regulatory Environment

Net neutrality, that on-again off-again issue, is officially back on after Ajit Pai, the chairman of the Federal Communications Commission, pushed a proposal to repeal it. Even with the announcement that more than a million of the comments submitted to the FCC were fake, the outcome of the net neutrality vote isn’t in doubt as Republicans control the Commission. The new regulatory environment would be a bust for streaming video publishers like Netflix and Amazon Video, and a boon for publishers under the umbrella of the larger telecom companies that will benefit, including AOL, HuffPost, and NBCUniversal. Meanwhile, the AT&T and Time Warner merger — which the U.S. government is trying to block — would inevitably boost HBO, CNN, and TBS if it goes through.

What this amounts to is a huge upending for independent publishers and small businesses used to an even playing field, and the potential bundling of subscriptions and promotions would favor the larger ISPs and telecom companies. Meanwhile, Congress’ clampdown on the technology industry suggests that regulation may also be coming for major tech companies. With opposition on all sides of the regulation debate, expect a topsy-turvy cycle of enforcement — and resistance — in the year ahead.

4. Leveraging AI

Artificial intelligence is often talked about, but little understood. Expect 2018 to be the year publishers take heavier stock in what it can mean for them. Publishers have already turned toward programmatic advertising, and programmatic video has a huge potential to deliver advertising boosts. However, that doesn’t mean publishers can turn a blind eye on issues like ad tech fraud, high programmatic fees, and lack of vendor transparency. Leveraging AI will mean investing more time in quality control.

And while it is the root of many fears, AI doesn’t necessarily mean the complete displacement of humans. Rather, working AI to your advantage can free humans up to do tasks that require much more nuanced attention. Utilizing AI to deliver more meaningful analytics that can help automate repetitive tasks for publishers like social media distribution, for example, or more personalized ad and news targeting, is one way publishers can redirect their energies and consider AI as an aid rather than a threat.

5. The Rise of Audio and Voice

If you’ve visited the websites of The New Yorker or The Atlantic lately, you may have noticed options to “listen” to digital stories. Will others follow? Given the attention on the voice — think of the popularity of podcasts and the mainstreaming and price drops of home speakers like Google Home and Alexa — expect voice-command gear, and more options to listen, to take center stage in 2018.

There’s been a push by tech companies to move into audio, with Google buying the audio curation app 60dB, and Apple recently buying the audio search platform Audiosear.ch and the music recognition app Shazam. Audio publishers are bound to get a huge boost if Google surfaces playable audio clips in its news results, for example. And while some voice-command software may get a lot of flack for “eavesdropping,” the threat to user privacy is likely overblown. With all the new options to listen to voices and startups like Trint and Descript focused on automatic transcription of these voices (which can serve as huge tools for publishers), 2018 may just be the year of the voice.

6. Brand Safety Issues

Brand safety was a huge watchword this year, from fake Russian accounts on Facebook to the discovery Google helped advertisers target people searching racist search terms, to the more recent revelations that YouTubers were reaping huge financial benefits from posting disturbing footage of children. You can expect Facebook, Google, and other platforms to be under the microscope even more in 2018. While many publishers can crow about creating safe curated spaces for advertisers, they too need to watch out for problematic issues when using programmatic ads.

7. The Battle Against Fake News Continues…

The battle against fake news and the filter bubble on platforms may have felt like it reached fever pitch in 2017, but as the weaponization of social media around the world shows, it’s a topic that’s here to stay, especially with the 2018 mid-term elections on the horizon. Google struggles to separate rumor from fact during breaking news, Facebook is at the center of a Rohingya massacre in Myanmar, and the Philippines’ right-wing president Rodrigo Duterte has also been using the platform to undermine opponents — including human rights activists and publishers who leverage Facebook as their main medium of distribution. Plus, Russia’s utilization of “social bots” to influence the outcome of the 2016 U.S. election is the precise reason Google, Facebook, and Twitter had to testify before Congress. With Donald Trump’s recent suggestion that the Access Hollywood audio in which he bragged about sexual assault was fake, expect more scrutiny on fake news in audio and video. The battle is only beginning.

8. The Power of Blockchain

The recent attention on the skyrocketing valuation of Bitcoin may have raised people’s FOMO quotient, but the attention on the technology behind it — blockchain — could have a huge influence on publishers and advertisers. Not only can this cryptocurrency technology allow for efficient monetization of content, but as Daniel Newman writes in Forbes, it has the power to help curtail ongoing issues with ad targeting. “Because the chain is transparent and encrypted, companies can easily determine if the people viewing their ads are members of their targeted audience—or not—saving millions in ad spend each year,” Newman wrote.

Indeed, there are a myriad of ways marketers can leverage blockchain. Publishers too can reap the benefits. A new startup called Civil, for example, looks to leverage blockchain to create a journalism platform free from fake news, advertising and outside influence. Blockchain also has journalists talking about its potential impact on news publishing.

For all its potential, though, blockchain remains confusing to many people, so you can expect a lot of explainers in the new year as interest increases.

Looking Forward

It’s been a rough 2017 in many ways, and change is such a constant that it has become a way of life in digital publishing. But we can be sure that as digital advertising has surpassed TV ads for the first time that digital has stopped becoming the “other,” the “nerds in the corner” and has now become the center of publishing. So rather than pout and complain in 2018, it’s time to buckle up, sharpen our focus on new tech, new techniques, and new collaborations and partnerships, so we can make the most of this wild ride.

Innovation

Listening to the audio opportunity at The Washington Post

August 14, 2017 Peggy Anne Salz, Founder and Lead Analyst – Mobile Groove

From the advance of AI and bots, to the explosion of mobile and apps, media companies must understand and evaluate a myriad of “hot” technologies. Business outcomes are linked to technology choices. Make the right choices, (and investments in the right platforms) and media companies can send traffic into the stratosphere. Miss a step, or a trend, and media companies can lose their shirt. Either way, the ability of media companies to determine their destiny as publishers is inexplicably intertwined with their willingness to experiment and innovate as technology companies.

Since Amazon founder Jeff Bezos bought the Washington Post in 2013, the publication has become a sandbox for digital ideas that span a wide spectrum. At one level, efforts to re-imagine old-school audio podcasts have won the company recognition as a top 10 podcast publisher, according to May 2017 data from podcast measurement company Podtrac. At the other end of the spectrum, experiments with Alexa and Snapchat are breaking new ground, and building new audiences.

Peggy Anne Salz, mobile analyst and Content Marketing Strategist at MobileGroove, spoke with David Merrell, Manager of Product Development at The Washington Post, to discuss how the company is harnessing audio content, exploring voice interfaces, and preparing for the opportunities and challenges of storytelling on new platforms.

Peggy Anne Salz: Podcasts are popular, with almost 20% of U.S. adults ages 18 to 49 listening to them at least once a month. It’s a trend the Washington Post embraced early. Now you have a string of podcasts, several of which hit 1+million downloads as early as a month after launching. Tell me about the chief factors you considered before making your move.

David Merrell, Manager of Product Development at The Washington Post (Photo by Marvin Joseph/The Washington Post)

David Merrell: We saw that smartphones are ubiquitous and—because podcasts are now available in everyone’s pocket whenever they want—we saw the opportunity. We then reviewed the studies, did research with our own readers and made the decision to go this route. We saw a fit with our efforts to expand our audio offerings in general across voice platforms such as Alexa and Google Home. But we also knew this was not a core competency. Our traditional competencies in news and storytelling were not what we would need to have a big impact in podcasts since podcasts are not about breaking news. We had to look at storytelling beyond breaking news, and really bring the analysis piece of it, as well as our own perspectives, into the podcast.

Since taking the plunge, we’ve launched several podcasts. There’s the historic focus podcast called Presidential, which was a huge success last year with one episode focused on each president. Now history wasn’t what you could call a core Washington Post product, but we were able to take our expertise and apply current thoughts and questions to historic aspects of the country and create a very compelling podcast that counts more than 9 million listens since it launched in January 2016. We just launched a sequel to Presidential called Constitutional that looks at the history of the Constitution and applies this to current events. With our lineup, we recently cracked the ranks of the top 10 publishers in the U.S. for podcast listens, which given the size of our team and where we were just a year ago is pretty incredible.

Podcasts and traditional news and investigative journalism—both are forms of storytelling delivered by mobile and apps. Some publishers might have been concerned one product would cannibalize the other, but you obviously weren’t…

It is a concern that comes up a lot. But we balance. Our big focus, in terms of business growth, is on digital subscriptions. Sure, it would appear at first glance that podcasts do not drive that since they are also available on iTunes. But we have seen very impressive results from successful marketing campaigns where we will tell people, “This is part of the wide breadth of Washington Post content that your subscription supports.” We’ve also seen huge engagement with our podcasts by our subscribers. So, even though this is a product that is widely available, it’s also a product that is highly engaging – and Washington Post subscribers access and appreciate the content.

Is this important in your efforts to attract new audiences?

When we’re talking about getting in front of new audiences, audio is a component of that. But we’re not limited to one way to get to this goal. Take our presence on Snapchat Discover. It’s also allowing us to get in front of people who wouldn’t necessarily have seen the Washington Post otherwise. Like all traditional media, we have an older audience that is very engaged, like other newspapers, we have had trouble reaching a younger audience and showing them who we are and what we offer in a way they can understand and see value in. And that’s important because don’t have to just get in front of them; we have to demonstrate value and show them why they should make the Washington Post part of their daily lives. Podcasts offer a way to do that, but so does Snapchat.

The Washington Post also launched a Reddit public profile, so another example of being on a platform to reach new audiences and find what a new home for your content. How do you choose and pursue these opportunities, without spreading too thin?

In the case of audio and podcasts, we made up our mind early that it was a boat we wanted to make, not miss. We launched Presidential, and after we were convinced of the success we hired people for audio roles. That’s what’s fueled the explosion is bringing in people with audio experience to help with the recording, to help with the scripting, to give feedback to the folks, internally, who are recording the podcasts. Since then, we’ve hired a product manager, who is almost wholly-focused on audio, and especially on Alexa, and then another hire in the newsroom focused on conversational audio. Now we are at the point where we are figuring out how do we record for new platforms like Alexa and Google Home, and what can we do to create a really sticky voice UI experience?

Frankly, the answer is always part tech and part user experience. What’s your approach?

There are different pieces to our Alexa strategy. The biggest one, is what you just described: the user experience. Right now, it’s like you wake up in the morning, you go to your kitchen where your Alexa likely is, and you say, “Alexa, what’s news?” Alexa cycles through a list of sources that you choose when you first set up your device, and that’s called your flash briefing. Alexa plays the briefing and you hear short bits of news from each of those sources. We’ve determined that this is the the stickiest news experience on Alexa right now because it’s so simple and baked-in to the device itself. It’s one word: news. The user just says news and gets news.

But it’s also a huge learning curve—for us as well as the consumer. As it works right now, people need to install a skill, which you can think of as an app. But there’s no home screen on Echo to remind people to tap on a Washington Post icon. Instead, users have to remember to say, “Alexa, open the ‘Washington Post’” in order to get to our news on the platform. We’ve found that is really difficult. It’s a whole lot easier for people to remember to say, “What’s news?” and then go into their flash briefing.

So, how do you plan to change that behavior or introduce new habits?

We’ve found it starts with marketing. We have to direct people to install our skill, and that means promotions to get our skill in front of people. So, we either need to reach them in exactly the right moment to tell them to enable “Washington Post” on their device, or we need to market to them on other channels away from the device. In which case, the marketing has to also educate them to remember to say, “Alexa, open the ‘Washington Post’” when they are back in front of their Echo. It’s a hurdle for every company with a skill. To encourage habits and get people to remember, we have also introduced a news quiz feature that’s updated fairly frequently to get people to come back in so they can play. They can only access the news quiz by saying, ‘Alexa, open the ‘Washington Post.’

As you said, every company that has a skill, or plans a skill, will struggle with this. What is your advice about how should they approach this?

We have not figured it out, so we don’t have a magic bullet solution. But I would say that content companies should go through the process of building a skill as a way to find out if there is a fit and find what users will value. If you are a smaller newsroom, and you have fewer resources in both engineering and editorial, then I would start with a flash briefing. Direct and educate your audience to add that to their flash briefing lineup, and go on from there since that is really the most engaging way and easiest way to get news on the platform.

Specifically, which channels and formats work to move users from accessing news via mobile apps or whatever platform they are currently using to consider getting news from Alexa.

We are in the very early days of experimenting with that now. To start, use a survey to figure out how many of your users have Echo devices. Then also look at your engaged users and target them. For us it’s our subscribers because they are the “Washington Post” super fans likely to switch. If anyone’s going to remember to say, “Open the ‘Washington Post’” every day, it’s going to be people who are already subscribing to us. As far as the precise channel, we start with email.

The Washington Post is exploring a plethora of platforms and technologies. But it’s also a company that has the resources to do so. What is your advice to companies that can’t be early adopters, but can’t afford to be late to the party either?

First, let me tell you about our approach. We dive in and define a period of time when we’re in all the way. After that, we look at the data to determine if what we are doing is worth further investment, or if we need to pivot. We do this will all the platforms. We go all in with AR, we go all in to test new storytelling format in Facebook Instant Articles, and we did it to create content for Apple News. We do this because we feel like that’s the only way to get enough data. It tells us where these new platforms fit strategically for us, and, it’s not working, we use the data to see how it could work for us and how we could work with these large tech partners to move their roadmaps in a direction that we would want to travel.

The point is I think media companies should be experimenting all the time. The status quo is not going to sustain anyone’s publishing business for very long going forward. So, I would encourage everyone, no matter their size, to experiment. I think it’s the scale of the experimentation that matters, not the company. If you’re a smaller publisher, look at where your audience is. If you have a huge percentage of your audience coming from Facebook, then I think it makes a lot of sense to focus some energy on Facebook products such as Instant Articles.

But don’t just look at your audience; look internally at the skills sets you have. You know, it’s a very low technical bar to start a podcast. I’m not saying that anyone can do it – you need some setup and training – but many companies and even individuals have achieved and engaged huge audiences with podcasts. It’s really a matter of trying it, seeing what resonates, and doubling down on that. And that’s the ethos of experimentation. Doubling down on the success to grow that success is something that any newsroom of any size can tackle.

So, is the post-Bezos Washington Post a publisher or a tech company?

Both. We think of ourselves as a technology company and a publisher at the same time. Our Arc Publishing [software-as-a-service] business continues to expand its client base, and we’re now licensing our tools to other companies including Tronc, which has adopted Arc as its fundamental platform throughout its nine-city metro chain. And there are more clients in the pipeline. Now that isn’t a business for a traditional publisher, but it’s something that we do and that’s all technology that we develop.

I’d say, we defy classification. We are a journalism company, we are a storytelling company and we are a technology company. You know, next to where I sit is a quote on the wall from Jeff Bezos: “What’s dangerous is not to evolve.” And that’s what it feels like to be owned by Jeff: to be constantly evolving and realizing that staying static is not an option. Staying static is the most dangerous thing a publisher can do.

Peggy Anne Salz is the Content Marketing Strategist and Chief Analyst of Mobile Groove, a top 50 influential technology site providing custom research to the global mobile industry and consulting to tech startups. Full disclosure: She is a frequent contributor to Forbes on the topic of mobile marketing, engagement and apps. Her work also regularly appears in a range of publications from Venture Beat to Harvard Business Review. Peggy is a top 30 Mobile Marketing influencer and a nine-time author based in Europe. Follow her @peggyanne.

Advertising | Industry-Research

Meeker’s annual report exposes opportunities to connect with consumers

June 6, 2017 Rande Price, Research VP – DCN

Mary Meeker’s annual Internet Trends Report is often referred to as the state of the union for the media and technology industry. In it, Meeker—a partner at venture capital firm Kleiner Perkins Caufield and Byers (KPCB)—highlights the biggest internet developments for the coming year. Her report provides insights on digital adoption, identifies which interfaces are resonating, and examines the dynamics of ecommerce.

Some key takeaways from her presentation:

Mobile dominates digital usage. U.S. adults now spend 5.6 hours a day using digital media, 3.1 hours (from 2.8 in 2015) via mobile devices and 2.2 hours on desktop and laptop.
The ad spend on mobile is not proportionate to the share of time spent on mobile. While consumers spend 28% of their time on mobile, only 21% of the digital ad dollars is spent on mobile media. This is expected to correct itself in the second half of this year.
As internet advertising continues to increase, the growth is concentrated in Google and Facebook, the internet duopoly. Meeker’s report notes that Google and Facebook control 85% of online ad growth. Google’s ad revenue grew 20% and Facebook 62% in 2016. For everyone else, the growth was less than 10% year over year.
Internet users are concerned about their privacy and security online. Consumers report being concerned with how their data is being collected, used and stored. Consistency and self-regulation of privacy policies are important steps in the monitoring the Internet ecosystem.

Where Meeker’s insights meet opportunity:

Voice recognition software and devices such as the Amazon Echo and Google Home are reshaping the consumer digital experience. In fact, Amazon Echo is now installed in 11 million households in the U.S. Further, 20% of all mobile searches are now voice activated.
Gaming goes mainstream. There are now 2.6 billion gamers today compared to a 100 million in 1995. In fact, viewing time for eSports, professional video gaming live-events and tournament, increased by 40% compared to a year ago. The gaming revenue concentration remains in Asia, with 47% of 2016’s $100 billion global market. Meeker believes video gaming’s socially engaging features will offer new businesses opportunities and sporting events.
Streaming music helps revives the music industry. Spotify, the marketplace leader, exceeded physical music sales, adding to the first revenue growth in the music industry in the last 16 years. Free trials are also driving sampling and subscription sign-ups.
Healthcare data is flowing with approximately 25% of U.S. consumers owning a wearable device, up 12% from a year ago. Further, 6 in 10 people report they are willing to share with health information with Google. Collecting and analyzing healthcare data has huge implications for the medical and healthcare sector from aiding clinical trials to identifying geographical and environmental healthcare concerns.

The marketplace is rapidly advancing and continues to grow in importance. According to Meeker, the top 20 Internet companies—many of which were not around before 1995—have a market value of nearly $3 trillion. New media platforms and information technologies are transforming new market economies. Yet it is important to note that Meeker sees new opportunities across multiple platforms to connect and add value for consumers.

Industry-Research

Virtual Assistants challenge the search box

April 25, 2017 Joe Buzzanga

Google owns the search space, but that space is showing signs of fragmentation. Our recent report (March, 2017 from Fivesight Research*) underlines Google’s sustained dominance in the search market but also uncovered early signals of a market shift that may have significant implications for digital media companies:

In the overall smartphone market 84% of consumers (Android and iOS) selected Google as their primary search engine.
Looking at specific mobile OS preferences, in Android Google was the primary choice of 90% of consumers; in iOS, its share was 78%.
On the desktop, Google commands an 80% share in total, with little variation among Windows, Mac, and Chromebook platforms.

Despite this overwhelming share of consumer preference, there are glimmers of a competitive threat to the Google search box emerging from the fast evolving category of AI-powered Virtual Personal Assistants (VPAs) like Siri, Cortana and Google’s own Google Assistant. In fact, the Fivesight report showed that Siri is the number two competitor to Google in the mobile space, outpacing traditional search engines like Bing and Yahoo. VPAs represent a new type of consumer interaction with content. This means that publishers need to be considering how to create content and experiences that will play well with VPAs.

This is all the more impressive given that Siri is only available on iOS devices, which by most estimates make up less than 50% of the smartphone installed base. And of course, it’s not just Siri. There’s an entire product category of AI virtual assistants evolving both on the smartphone and as standalone home devices.

While the Siri and VPA threat to Google isn’t material at the moment, the data suggests a potentially disruptive market shift. Consumers are getting more comfortable with VPAs despite their technical limitations. As the technology improves we’ll likely see even more consumer adoption and possible displacement of some portion of traditional search engine queries. And every query that goes to Siri or Cortana is a lost revenue opportunity for Google. For marketers the change to “traditional” search engine marketing could be significant.

The VPA impact isn’t confined to smartphones either. Both Siri and Cortana are integrated into current desktop OS releases from Apple and Microsoft. Siri was introduced to the desktop with Apple’s September, 2016 release of the Mac OS, Sierra. Microsoft’s Cortana has been available on desktops since the introduction of Windows 10 in July, 2015. As these operating systems penetrate more of the installed base it is likely that at least some portion of searches will move to the VPA. In fact, during its Q42016 earnings call Microsoft reported that the Cortana search box had over 100 million active monthly users with 8 billion questions asked to date.

For now though, the sheer volume of search activity will keep the traditional Google search box healthy, even with lower cost per click and leakage of queries to alternatives like VPAs. Consumers are searching more than ever, and the Fivesight report showed 50% are searching more than they did 12 months ago, 43% about the same and only 6% less frequently. All of this activity means that keywords and traditional SEO will remain critical tools for digital marketers.

VPA queries represent a new type of consumer interaction that will require a fresh approach to content development and audience engagement. It is not too early for publishers and marketers to explore how they will play in an environment where AI powered devices and applications usurp the role of the conventional search box. For starters this means leveraging VPA open APIs to build apps and services that integrate with Siri, Cortana, Alexa and the rest.

15 years ago in his annual shareholder letter, Larry Page spelled out his “dream” for search. Instead of keyword queries and blue links he imagined an AI that would answer spoken questions. Today we are seeing glimpses of that AI powered search. How ironic it would be if Page’s dream turns into a nightmare that fractures the Google search box and the empire built upon it.

Joe Buzzanga is Founder and Chief Analyst at Fivesight Research. He has over 30 years of experience in product development, market research, product strategy and industry analysis. He has a diverse technology background spanning telecommunications (Bellcore/Ericsson, 3Com), semiconductor (Intel), publishing (Elsevier, IEEE) and information retrieval (Elsevier, IEEE). Joe has an MBA from Rutgers University, an MLS from the University of Wisconsin-Madison, and an MA in Philosophy, also from the University of Wisconsin-Madison.

*Note: In March, 2017 we surveyed 800 U.S. consumers via smartphone using the Pollfish online survey platform. This sample was split 50/50 between iOS and Android users to provide statistically projectable results both in the smartphone population as a whole and within iOS and Android sub-segments. The sample size yields a 5% margin of error with a 95% confidence interval. The survey was administered via smartphone, but we asked users about their preferences on both smartphones and desktop/laptop computers.

Advertising | Industry-Research

Today’s challenges offer an opportunity to rebuild trust in digital media

January 24, 2017 DCN

With trust in mass media at a record low, publishers look to 2017 as an opportunity to distinguish quality journalism from the fake news landscape and bot traffic of big tech platforms.

CEOs, editors and digital leaders today recognize both the opportunities and the challenges in 2017. Reuters Institute surveyed 143 senior publishing executives in 24 countries to recognize current business sentiment, uncover trends and identify new developments in the digital marketplace. Interestingly, Reuters found that more than two-thirds (70%) of executives believe fake news offers them a chance to strengthened their brands. More than half (56%) say that Facebook Messenger will be an “important/very important” part of their offsite initiatives this year (53% for WhatsApp and 49% for Snapchat). And at the same time, just under half (46%) of these same respondents are more worried today than a year ago, about the role of offsite platforms.

In Reuters Institute’s annual predictions report, the key trends identified for 2017 include:

1. Addressing fake news

Fact-checking news outlets becomes the new norm.
Platform and algorithm changes allowing for easier reporting of false news (and feeding these signals back into the core algorithms so these sources get devalued).
Regulation threats to remove fake news from sites.
Algorithms are expected to challenge our bias.
Fighting for quality news brands.

2. Redefining publishers’ relationship with platforms

Publishers fight back by creating platforms of their own (e.g. Schibsted, started its own platforms for content and advertising to create the scale and data competence to compete with Facebook).
Platforms pay hard cash for content.
Mergers and acquisitions happen more often as scale will mean operating across multiple platforms.

3. Digital advertising and sustainable business models

Subscription payments will focus more about membership and less about paywalls. News publishers, especially, will need to attract new customers, offer new pay services and earn more money from their current subscribers.
Data, loyalty and personalization will help with converting unidentified web users into loyal customers by creating more relevant and personal experiences.
Mobile alerts and the battle for locked screens signifies the shift to mobile notifications to attract consumers back to apps and websites.
Acceptable ads and ad-blocking apply pressure on the marketplace to ensure a more positive user experience with non-intrusive advertising.
Sponsored content replaces the displayad model.
Pop-up newspapers and magazines will offer in-depth coverage on certain topics but for only a limited period of time.

4. Messaging applications and news bots

Voice news bots with voice-activated platforms gain strong penetration (e.g. Alexa and Google Home).
Fact-checking bots are activated (e.g. Full Fact, a UK based company, is already looking to developing a service that fact checks live press conferences).
Conversational commerce emerges (e.g. Crosby, a travel bot service, that reads your email or group messaging conversations and send you recommendations for where to eat, what to do and when to leave for the airport).

5. Voice as an operating system and the rebirth of audio

Podcasts and audio books get a big boost in the car.
Improvements to data and advertising around podcasts lead to significant investments by publishers. A new measurement system form Nielsen’s and a Swedish start-up platform Acast offer metrics for podcasts to support advertising models.
Businesses start to deploy Amazon Echo and Google Home speakers (e.g. hotels use voice-controlled devices to enable guests to order room service, check the weather and find TV channels).

6. Online video and the future of TV

Disillusion with Facebook Live shifts a live focus towards sport and exclusive music, both strong vehicles to attract audiences and advertisers.
Oversupply of short form video leads to falling advertising premiums.
New opportunities with feature-based videos for brands integrate messages into videos.
Video-selfies to experiment with new fantastical filters (e.g. Splash is a new app that allows you to create and annotate 360-degree experiences).

7. The blurring of television and online video

Top content will increasingly be watched on big screens.
Competition for talent and rights heats up to drive new subscription and retain existing users.
News bulletins lose audiences triggers new ways to appeal to young (e.g. CNN acquired video-sharing app start-up Beme, co-founded by YouTube creator Casey Neistat, is building a new brand around distinctive reporting and commentary for millennials).
New cross-platform metrics for TV.

8. Virtual Reality (VR), Augmented Reality (AR) and Mixed Reality (MR)

New reality tech offers huge potential to shape experiences for entertainment, education and commerce. Forecasters suggest around 30m devices will be sold by 2020 generating revenue of around $21 billion.

9. AI and algorithms under fire (e.g. An example gone sour was Microsoft’s friendly AI driven chatbot Tay. Within its first 24 hours on Twitter with Millennials, it was spouting offensive and racist messages such as “Hitler was right”).

10. Automation and a jobless future means robo journalism on the way

More automated stories.
Intelligent content production systems.
Computer and networked assisted investigations.
Filters and alerts are being developed to help manage the information overload (e.g. SamDesk and Dataminr are deployed in newsrooms to pinpoint and manage breaking news in social networks).

11. Cyber-Wars, and Personal Security

Encryption and surveillance are on the rise.

12. New technology

Sharper screens, fold out phones, better batteries.
Faster and more reliable networks (e.g. 5G).
Clothes as a platform with wearable technology.
Biometrics, the end of passwords and checkout-free shopping. A new shopping experience, Amazon Go, that automatically detects when products are taken from or returned to the shelves using computer vision and sensor fusion.

13. Start-ups to watch

Cheddar is a new business news video network for millennial. Founder Jon Steinberg of Buzzfeed is charging $6.99 for premium services on its own website and is looking to drive carriage fees from services like Facebook Live, Twitter and Netflix.
Zipline is a small robot airplane designed to carry vaccines, medicine and blood in developing countries.
Houseparty is a new group video chat, up to 8 people can chat at a time, from the creators of Meerkat.
Accompany aims to provide an automated briefing of all the information you need before you walk into any meeting including relevant files, email conversations with attendees, details about their lives sucked from the web plus up-to-date information on company performance.

2017 provides many opportunities for publishers to rebuild consumer trust in digital media. The Reuters Institute predictions suggest that publishers must help scrub the digital environment from bot traffic, annoying ads and fake or misleading news. They must hold themselves and others responsible and keep a watchful eye on the algorithmic accountability tied to the digital experience. Importantly, publishers must continue to build their digital brand and diversify their revenue streams beyond digital display advertising.

Innovation

A voice-enabled journalism primer

November 4, 2016 DCN

As we start communicating with smart devices such as Amazon’s Echo and Google Home, how will this technology impact news audiences? How will news consumers be able to use voice commands to access stories on demand?

In 1899, The Associated Press used Guglielmo Marconi’s wireless telegraph to cover the America’s Cup yacht race in New Jersey, the first news transmission test of what would later be called “radio.” Today, the media industry is once again enabling the exploration of audio news – this time in a new field: voice-activated technologies.

From point-and-click to voice-enabled commands
The internet used to be in a “point-and-click” phase where desktop websites flourished, but now it’s in a “touch” phase as mobile devices and apps have increased digital access to content and services.

Soon, voice commands will usher in a third phase through the “internet of things” and all types of connected devices and experiences. These commands carry promise and the potential to link the fragmented on-demand experiences we see emerging in connected cars, homes and voice assistants.

Global revenue estimates from the smart audio market have increased to $5 billion by 2020, up from $1 billion this year, according to Juniper Research. Devices in our homes (think smart refrigerators) are forecasted to be the biggest driver of growth.

“Audio is a powerful interface for connected ecosystems,” said Mari Joller, founder and CEO of voice-technology company Scarlet. “Other than being efficient – your hands and eyes are free – and often the only viable option for certain use cases like driving, it is also perhaps the most human way to communicate information.”

How do voice-activated systems work?
While these devices can recognize that someone is speaking to them, they cannot necessarily understand what those words mean. The challenging part appears when the system needs to make sense of “What did the president say today?” That requires natural language processing, which is driven by definitions and relationships between words.

The most fascinating opportunity involving natural language processing is the ability to ask specific questions and receive answers. In order to deliver, a smart device needs to analyze the words in a question, retrieve the right answer from a specific data set such as a news archive or feed (like weather forecasts or sports scores), and finally utilize text-to-speech technology to speak back to the user.

It’s likely that news consumers will be able to stop and rewind specific stories on demand in the future. For example, if I asked, “I heard there was an earthquake today. Can you tell me more about it?,” a device would be able to surface a relevant news article or video and then play it to me on command.

“It’s a very exciting time for voice assistants and on-demand audio news,” said Tom Januszewski, a director of business development with AP. “The Amazon Echo, in particular, has surprised everyone with its broad acceptance, and the large number of news organizations already participating on the platform.

“It shows these news organizations recognize the importance of the technology and that they want to get in early.”

What are the ethics surrounding voice-enabled platforms?
According to Victor Vina, an assistant professor at the Pratt Institute, these smart devices raise the idea of “ubiquitous computing,” where we’re surrounded by technology without even realizing it. But we still know very little about the psychological effects of using these devices.

“What are the benefits to our personal lives?” he asked. “As artificial intelligence evolves, it is crucial to consider values such as empathy, identity and privacy, in addition to intelligence, efficiency and productivity.”

As this technology advances, more media organizations will be experimenting to find what works best for delivering news on such devices.

Francesco Marconi (@fpmarconi) is the manager of strategy and corporate development at The Associated Press and an Innovation Fellow at the Tow Center for Digital Journalism at Columbia University.

Innovation

Publishers find their voice on Amazon Echo

October 27, 2016 DCN

It doesn’t seem like it was all that long ago that printing was the only option for publishers. Then came the web, podcasts and apps—and an ever-proliferating number of new ways to deliver content—one of the latest of which is Echo, the voice-driven device from Amazon.

You might be thinking that broadcasting on the Echo wouldn’t be a fit for many traditional publications. But the fact is just about everyone is looking for the next big delivery platform and many big names have already started exploring the Echo including NPR, The Guardian, TechCrunch (where I also write), The Washington Post, Harvard Business Review and Slate. It doesn’t hurt that Amazon has been aggressively recruiting publications to deliver content on the platform for its Flash Briefing, which tells listeners the news in a few minutes or less.

In case you’re not already tuned in, the Echo is a voice-controlled device that users interact with by using the trigger word, “Alexa” to listen to personalized content that’s been configured through a smartphone app. With Flash Briefing contents, users can select the publications they want to include in their daily briefing.

The technology is so new it’s hard to draw any firm conclusions about it just yet, but content producers are experimenting with different ways of creating content, measuring audience and even early forays into monetization. It’s nascent area, but today’s most successful publications are quite used to consistently testing new delivery methods, and they’re open to the opportunity presented by Alexa.

Building content
The first step is producing content, which is not unlike a podcast. In fact, for companies that have been producing podcasts, the transition to Alexa has been relatively smooth. For instance, Slate came on board by invitation from Amazon, and created a program called 90 seconds with Slate, which they produce three times a week.

David Stern, who is head of product development at Slate said the publication has been producing long podcasts of 20-40 minutes. And while many of the lessons they’d learned were a help in the transition, it was somewhat of a challenge for them to produce short-form audio simply because of its brevity.

Harvard Business Review was also approached by Amazon so it carefully considered the best way to dip its feet into the Echo platform. “Like other publishers we are watching trends like voice user interfaces, artificial intelligence and bots and we are looking strategically to smartly experiment in these spaces,” Adam Bucholtz, product manager at Harvard Business Review said.

HBR decided to repurpose its popular daily management tip on the Echo and hired a voice-over artist to do the recording. In fact, they recorded 80 tips up front for about three months’ worth of content, and they will revisit how well it’s doing after they exhaust the first batch and decide how to proceed.

Measuring and monetizing
It’s still so early for voice platforms that it’s hard to determine how to make money on such short-form content, but Joey Marburger, director of digital products at The Washington Post says his company has been running a short ad at the beginning of each episode. The ad obviously needs to be really short—about 10 seconds—because the content itself is so brief, but Marburger says the platform makes it easy to include an ad because it allows you to load multiple files. That means you can load the ad as a separate file in the package, then run the briefing. As an added plus, production for the extremely short ad content is lightweight.

In terms of ROI, he says the platform includes some basic tools to measure how many people listened to the ad, and when they started and stopped listening to the briefing, and so forth. However, he points out that there is no way to measure demographic data as there is with web ads, and he doubts there ever will be.

Marburger says he’s been happy with the ad performance though, as have been the advertisers, who want to appear to be on the cutting edge and reach an audience of people who like new tech like the Echo. He also reports that they are making “quite a bit of money” from the ads and the sales team has taken to selling them like any other ad product.

Other companies we spoke to are staying away from ads for now, but could see including them at some point if the projects move beyond the experimental stage. Marburger acknowledges that the novelty will wear off for both users and advertisers eventually, but still sees opportunities to expand the content over time.

For now, publishers are feeling it out and seeing what works, and if there is an audience for it. As HBR’s Bucholtz says, “If it resonates, we will look how to keep the content going.”