Presented at Changing Media Summit in London, "the must-attend event for anyone concerned with creative and commercial success in the digital age. It is aimed at senior executives responsible for strategies in digital, online, new media, mobile, marketing, branding, finance, comms, content, audio and more."
This is a strategic view into media platforms and ecosystems, why they matter and how to create and participate in them.
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The Open Strategy
1. The Open Strategy
-- or how I stopped worrying
about my web site and learned
to love the whole Internet
Matt McAlister
Head of Guardian Developer Network
Guardian News & Media
2. âą Why care about openness
âą Platforms and ecosystems
âą Opening out and opening in
âą Business beneïŹts
3. How big is the Internet?
1 Billion
Internet
Users!
4. How big is the Internet?
1T
Googleâs Search Index
26M
1B
http://googleblog.blogspot.com/2008/07/we-knew-web-was-big.html
7. Ad networks embed themselves
wherever the users are
Top 15 Ad Networks March 2008
Total U.S. â Home/Work/University Locations
Total Unique Visitors
% Reach
(000)
Total Internet : Total Audience 188,010 100.0
Platform-A* 170,537 90.7
Yahoo! Network 160,336 85.3
Google Ad Network 152,048 80.9
Specific Media 145,554 77.4
ValueClick Networks 140,091 74.5
Tribal Fusion 135,640 72.1
Casale Media Network 129,399 68.8
DRIVEpm 124,333 66.1
adconion media group 117,469 62.5
interCLICK 108,818 57.9
Traffic Marketplace 105,420 56.1
Collective Media 100,151 53.3
24/7 Real Media 94,525 50.3
ADSDAQ by ContextWeb 94,459 50.2
Burst Media 93,291 49.6
Source: ComScore, April 2008 http://www.comscore.com/press/release.asp?press=2184
8. The Google content network reaches over 75% of
unique internet users in more than 20 languages and
over 100 countries. As a result, if you advertise on
both the Google search network and the Google
content network,
you have the potential to reach three of every four
unique Internet users on Earth
9. Go to where the users are
âIn the new distributed world you want to be
where the people are.
The media brand is less a destination and a
magnet to draw people there than a label once
youâve found the content, wherever and however
you found it.â
- Jeff Jarvis, Buzzmachine, âAPIs: The new distributionâ
10. âAlthough NPR.org is still
critical to our strategy, we
can no longer rely
exclusively on the site as a
way to reach people.â
http://www.npr.org/blogs/inside/2008/11/nprs_open_content_strategy.html
12. The Open Strategy
OPEN IN OPEN OUT
Drive engagement Increase reach by
by bringing in distributing
services from the services across the
Internet Internet
14. âThe importance of any given
experiment isnât apparent at the
moment it appears; big changes
stall, small changes spread.
Even the revolutionaries canât
predict what will happen.â
Clay Shirky, âNewspapers and Thinking the Unthinkableâ
15. Ecosystem dynamics
Hosts Food chains
Parasites Producers
Reproduction Consumers
Waste products Evolution
Fuel and energy
18. Related example: Motorcycle manufacturing
âIn contrast to more traditional, top-down
approaches, Toyota assemblers succeed not by
preparing detailed design drawings of components
and subsystems for their suppliers but by deïŹning
only a product's key modules in rough design
blueprints and specifying broad performance
parameters, such as weight and size.
Toyotaâs suppliers take collective responsibility for
the detailed design of components and subsystems.
Since they are free to improvise within broad limits,
they have rapidly cut their costs and improved the
quality of their products.â
- John Hagel and John Seely Brown, Connecting Globalization & Innovation
21. What do they want?
High quality and unique content
Reliable and easy-to-use tools
Ways to make money
Ways to get distribution
ConïŹdence that they matter as customers
22. Partners show
success and
become evangelists
Ecosystem gets
Partners ïŹnd ways
stronger and more
to take advantage
attractive for
of the platform
partners
38. Open In: User Behaviors
âOne of the key lessons of the Web 2.0 era is this:
Users add value. But only a small percentage of users
will go to the trouble of adding value to your
application via explicit means.
Therefore, Web 2.0 companies set inclusive defaults
for aggregating user data and building value as a
side-effect of ordinary use of the applicationâŠ
They build systems that get better the more people
use them. â
Tim OâReilly, âWhat is Web 2.0?â, September 2005
44. Common view of the beneïŹts
Drive trafïŹc back to your web site
Innovate faster = cost savings
Improve reach
Extend advertising and licensing models
50. The scary stuff
How do I prevent misrepresentations of the
brand and our content?
Can we turn it off?
Who is using our stuff?
51. Create the conditions for growth
Access
Redistribution
Reuse
Absence of Technological Restriction
Attribution
Integrity
No Discrimination Against Fields of Endeavor
Distribution of License
License Must Not Be SpeciïŹc to a Package
License Must Not Restrict the Distribution of Other Works
52.
53. âYou may attach advertising to
your web site which includes
Guardian content without
accounting to us for any share in
the revenue generated.â
56. The Network is the Computer
The network effect is a characteristic
that causes a good or service to have
a value to a potential customer
dependent on the number of customers
already owning that good or using
that service.
For example, by purchasing a
telephone a person makes other
telephones more useful.
http://en.wikipedia.org/wiki/Network_effects
57. âWhen all that is solid is melting
into air itâs important that we try
to imagine how weâd like the
future to turn out and set our
sights on that, and not just
struggle to keep the past alive for
a few more years.â
Steven Berlin Johnson, âOld Growth Media and the Future of Newsâ
58. Ecosystems can ïŹatten markets
quot;The average export price of Chinese
[motorcycles] has dropped from $700
in the late 1990's to under $200 in
2002. The impact on rivals has been
brutal: Honda's share of Vietnam's
motorcycle market, for instance,
dropped from nearly 90 percent in 1997
to 30 percent in 2002.â
59. Thank you.
Matt McAlister
matt.mcalister@guardian.co.uk