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Technology/Internet

Over the past year, the team at NCI has been developing a social marketing service under the umbrella of Digital Sherpa for local advertisers. The service was launched commercially into the multi-family market last August and into the home design market in December.

Our attention over the past months has been focused on executing on our value proposition for our clients. The core of the proposition is to leverage social media tools and content creation and curation in order to expand a customer’s digital footprint. The outcome is increased web traffic through improved Google juice and increased connectedness with their community of interest.

To execute these propositions at a low monthly price to our customers while delivering measurable results, we’ve been building and fine-tuning our business processes and bringing on board a group of talented and enthusiastic professionals excited to pioneer the next wave of internet marketing.

Our activities attracted the attention of a leading analyst in the local media space, Peter Krasilovsky, who heads up the Marketplaces advisory service at The Kelsey Group. Peter asked to look under the hood and has issued summary report about DigitalSherpa.

Here’s how he framed the report in his alert to clients:

Will vertical advertising be replaced, in whole or in part, by search engine optimization? That’s the question companies are grappling with as they consider that many leads are coming from articles and other media that rank high in search results.

NCI, the publisher of The Real Estate Book, Apartment Finder and other publications, isn’t waiting to find out. Throwing worries of cannibalism to the wind, it is building social media content for its advertisers, placing highly contextual articles, abstracts, photos and video on advertiser blogs, Facebook and Twitter.

In his report, Peter poses 5 key questions about the Digital Sherpa service:

  1. Will “content” be a compelling proposition of potential clients, even though the big SMB bets for 2010 are reputation and presence management?
  2. Will DigitalSherpa experience the same high churn that other local internet ad services have experienced with SMB’s?
  3. Can DigitalSherpa develop effective content?
  4. How much content does a service need to develop in order to deliver results to its clients?
  5. What impact will creating DigitalSherpa have on our core customer relationships?

These are great questions. I’m not going to take a stab at answering them now. With close to 1000 clients currently, we’ve going to have data-driven answers to the questions in fairly short order. That will be the time to see how things shake out in this social media marketing experiment.

The Kelsey Report advisory alert is available to subscribers here. If you have questions for Peter, you can find him at his blog, The Local Onliner.

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The single content brand that I’ve had the longest relationship in my life is The New York Times.

55C5799A-FF3C-41C9-96A6-C6080D9335D1.jpgEven though I grew up in New England, a highlight of the week was when my dad went and got the Sunday papers — the Boston Globe, the Providence Journal and The New York Times.

Five decades later, the New York Times is still a key element of my daily information routine.

I’m typing this post up in the small cottage my wife and I use for our Connecticut office. There’s snow everywhere, and I can see to the end of the driveway out my window. There’s a block of blue plastic propped up against the snow. It’s today’s copy of the Times.

Someone will probably bring it in later. But I’ve already had three interactions with my favorite newspaper.

photo.jpgThe first was around 6am when I woke up and browsed the national and business stories on my iPhone. (I use the mobile browser version of the paper; their iPhone app is overly busy and slow.)

About an hour ago, I stopped for a cup of coffee and went to NYTimes.com to check out the sports and arts headlines. I read a couple of stories and then shifted over to my RSS reader (I’m a fan of the Firefox add-in Feedly.) I caught up on some of the economics writers that I like to follow.

The New York Times doesn’t have to worry about my loyalty to the brand. It stands out for its quality and its breadth.

But the New York Times does need to worry about its economics.

The change in how I access the Times is a good example of how its business model has shifted. Its audience is no longer a cohesive entity which it can leverage for commercial benefit. The audience has fragmented into distribution channels that don’t offer the same advertising payback.

As a consumer, I’m still paying a lot to get to the Times. I spend more than $1000 a year on my internet access and more than $1000 a year on my wireless access. I’m paying for the distribution pipe.The New York Times - Breaking News, World News & Multimedia.png

How does the NY Times turn its brand equity with me into money? The brand doesn’t have a consumer problem and it doesn’t have a content problem. The problem is in the relative economics of distribution and advertising in the new channels that I am reliant on.

There’s not a lot of advertising on the pages I’m encountering during my interactions with the Times. And the advertising that is there is nowhere near as lucrative as the advertising in the print version of the paper.

This is a shift from being a MEDIA brand to being a CONTENT brand.

When you’re a content brand, you need to be able to extract a significant amount of your profit from the value of your content. That payment will come either directly from the consumer or from the distribution pipe (think of Premium versus Basic cable channels.)

But in this ubiquitous information world with broad redistribution of content, the distribution pipes aren’t looking to pay to subsidize content creation.

And, if the New York Times wasn’t available on my iPhone or on the web, would I change carriers? Nope. I like the content and I’ve got a long-term relationship with the brand, but I don’t think that would be enough to change my communications and internet infrastructure.

This is a problem that challenges the economics of paying people to create quality content.

Interestingly, I think it’s where the content curation discussion becomes most relevant.

A brand like the New York Times, which has tremendous reach and authority, needs to find ways to expand and deepen its relationship with its consumer across the wireless and wired web. Curating content, building applications, creating micro-communities, turning its top journalists into entrepreneurial brands, picking and choosing where to invest money in highly differentiated and traditional reporting…this is the mix of content, focus and activity that can make the digital connections into increasingly profitable areas.

Here’s how the head of the NY Times is looking at it. The key business focus is finding ways to recover the content costs. I think there’s a bigger web to spin, which will help to support the cost of original content in a different way.

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Content “curation” can create authority

March 4, 2010

Traditionally, the most valued content was original.
This emphasis developed within a content model of constrained distribution and expensive production costs. When there are only a handful of distribution points for content — some magazines, books, a handful of TV station and radio stations — the way to build audience was to deliver original and [...]

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An insider’s look into multi-channel marketing

March 4, 2010

Over the past five years, while people have debated the future of print media, retailers have developed an approach to direct marketing that balances multiple distribution channels, including web marketing, e-mail marketing and, of course, print media in the form of catalogs.
The decision-making is fact based: How much does it cost to acquire a [...]

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Most marketers look to social media to increase web traffic and improve results, a new survey shows

March 3, 2010

What’s the most important and tangible goal for marketers using social media? To drive web traffic, according to an ongoing benchmarking study conducted by the consulting firm MarketingSherpa.
73% of the more than 2300 respondents to the MarketingSherpa survey says they target the goal of increasing web traffic, and measure results against that goal, when [...]

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The scale of the Internet, 2009

March 2, 2010

A timely update of internet statistics, with commentary from Jeremiah Owyang at his blog, here.

JESS3 / The State of The Internet from Jesse Thomas on Vimeo.
The video was designed by the agency Jess3. Their blog is a fun place to spend some time — they do a lot of cool graphics and data visualization [...]

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Social media adoption by small business tops 75%, U Maryland survey shows

March 2, 2010

eMarketer shared an interesting piece of research from the University of Maryland’s business school this week.
The survey looked at the use of social media tactics by small business.
The key takeaway: Small businesses are rapidly adopting social media. 75% have created a company presence on sites like Facebook and 69% say that they actively [...]

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