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The Ongoing Ramblings of A Media Startup

June 29, 2007

A Chat With Microsoft On Conversational Marketing

I spent last Friday evening at LAX and the Burbank airport (and trafficky freeways between the two) on a 9 hour quest to get back to San Francisco. Lucky for me, I found myself distracted by an engaging and spirited discussion of advertising models, journalistic ethics and best practices for conversational marketing! A week later I find myself, again, stuck in Los Angeles waiting out flight delays -- and collecting my thoughts on last week's hoopla around conversational marketing.

Earlier this week I had a frank conversation with the folks at Microsoft to get their take. After revisiting the elements of the ad campaign, we agreed that this sort of "conversational marketing" doesn't violate ethics (marketer or journalistic) or intentionally mislead readers. Still, they are taking seriously the perception among some commentators that we all could have done more to disclose the details on the campaign. More transparency can't be a bad thing. Most importantly, Microsoft is listening and trying to learn from the feedback. I was thrilled to hear all of that.

That's what makes conversational marketing so compelling to me (and my colleagues at FM) -- it allows our customers to give us feedback. Honest feedback isn't always nice to hear, but it's important that we hear it, that we listen and that we grow from it. We'll keep at it because we're committed to finding more relevant, natural ways to communicate to our customers, and (let's hope) we get better each time.

June 27, 2007

Feel the Love: PC World Lists its Favorites

133119-100BlogsWeLove_badge_phixr.jpg The editors of PC World listed their favorite sites in "100 Blogs We Love," and we're proud to report there are 15 FM authors on the list:
Mike Arrington's Tech Crunch
Ken Fisher's Ars Technica Journals
Richard MacManus' ReadWriteWeb
Om Malik's GigaOm
John Battelle's SearchBlog
Andrew Carton's Treonauts
Glenn Fleishmann's Wi-Fi Networking News
Ed Bott's Windows Expertise
Jeff Jarvis' BuzzMachine
Jerry Beck and Amid Amidi's Cartoon Brew
Scott Beale's Laughing Squid
Andy Dehnart's Reality Blurred
Xeni, Cory, David and Mark's BoingBoing
Dale, Phillip, Mark and Shawn's Make
Merlin Mann's 43 Folders
Congratulations to all. (And yes, John, I know, we should have more than 15 in the next edition of the list.)

June 23, 2007

A Follow Up

Well, we certainly stepped in it, judging by the "blogstorm" over Nick's post this past Friday. Over the past 24 hours scores of highly respected voices have chimed in on Microsoft's campaign, and I wanted to take the time to read as much of it as I could, really listen, and figure out where I came down in all of this. I've seen broadsides at FM and its partners, and also significant posts of support. I value it all, I really do, and I'm learning from it all as well.

Before I dive too deeply into this, I want to say that I take full responsibility as the CEO of FM, for any lost trust, and for any damage this has done to anyone involved.

Second, to be clear: I personally thought it was fine to lend my voice to the campaign, just as I did with Cisco and Hakia, and for the record - and speaking only for me - I still do. I always post when I join these kinds of conversations - here's my Microsoft post, for example. If you've read my writings on conversational marketing, you know that I believe deeply in the idea of bringing marketers into the conversation of a site. I wrote:

I've argued for more than 15 years that all commercial publications are conversations between three core parties - the author, the audience, and the advertiser. The best of these have a robust shared grammar, a voice that all three parties understand and respect. At Wired, for example, we ran a survey asking readers the major benefits of reading the magazine. "The Ads" came up near the top. Why?

Wired had a very strong editorial voice, one that readers strongly associated with and felt passionate about. Sure, it was not for everyone, but what great voice is? It may be hard to believe, but advertisers are people too - and many of Wired's advertisers were readers of Wired, and they also felt passionate about the markets and ideas the magazine represented. In fact, many of our advertisers not only shared Wired's point of view and enjoyed its voice, they felt - through the products and services they created - that they were actively participating in the conversation Wired represented - they were participants in a grand conversation about the digital revolution and its impact on society.

So a funny thing started to happen. The advertisements started to adopt the grammar and voice of the magazine. Now, some of them were admittedly lame - cheap attempts to copy the design and buzzwords for which the magazine was (in)famous. These ads were off key, pretentious, they lacked integrity. But far more hit the right notes - the added to the conversation, they understood the mores and values of the Wired conversation, they respected the dialog, and they threw in their two cents appropriately. Hence, the ads became an important part of the benefits of reading Wired, and the survey results showed it.

Wired was a great example of marketers joining a mediated conversation in an appropriate, valuable way. Why, I wondered as I puzzled out FM, can't that idea be extended and deepened online? After all, as the Cluetrain taught us, your ads need not simply be a declarative statement frozen in time, as it must be in television or print. Online, the conversation can continue, it can deepen, and it can take its own course.

Microsoft was attempting something new, certainly something entirely new for the company, in any case - it was inviting authors into the marketing conversation. We tried to do it in a way that was transparent, that had integrity, where no editorial space was purchased. Clearly, a number of prominent voices believe lines were crossed, including several in the FM family. Well, that's OK, in fact, that's how we're supposed to learn - by listening to voices we respect. And I've learned some things here, more on that in a minute.

But let's step back for a minute first and examine some of the assumptions in the criticism so far. Microsoft was trying to do something new, but the overwhelming presumption behind many of the critics of this campaign has been that Microsoft was being evil. That it was trying to pull the wool over our eyes. That it was, in short, a bad actor. Why? Why this knee jerk assumption that an important character in the conversation happening in our world is evil, wrong, malicious? And that all the authors associated with the campaign are dupes, fools, schills? Are we really still stuck in 1996, where every single thing the company does is presumptively evil?

Come on folks, let's think this through a bit more. I give the company a lot of credit for trying something new. I know all the folks involved in this campaign, and they are not evil. They are not trying to dupe us. They are honestly trying out something new. They didn't think they were taking much of a risk: after all, similar campaigns had run for over a year - millions and millions of impressions against scores of sites - without any reader revolt or blogstorms breaking.

So...why now, and why Microsoft?

Well, I'll leave that thought for you all to consider. I do believe the campaign could have been executed better, and we at FM should have already publicly posted our principles on the best practices for this kind of marketing, calling for your input and refinement so we can ensure your trust. We had planned to do that next month, and we had already drafted our principles and were in the process of getting our author's input just as this story broke. Clearly, we'll get them out quickly so you all can help us do better.

Now back to lessons learned.

I think the main criticism of the campaign comes down to this: Never do anything where there is a perception that integrity was purchased. The question is, how to ensure that perception? I think in the case of the authors who participated in the Microsoft campaign, there are pretty much two camps. First, there are those who do not claim to be "traditional journalists" or who believe that their readers are sophisticated, and can judge for themselves whether their voice has really been purchased. They figure anything that is in the ad unit is understood to be an ad. If they participate in it, they disclose that by the fact of their name being in the ad. They honestly don't see what the fuss is about. Those in the second camp, after thinking about this episode, think they made a mistake about joining the campaign. They've stopped the ads running on their sites, and they won't do similar campaigns in the future.

I think there's room in this world for both approaches. But no matter what, I think the key, as Scoble says, is to disclose. Our draft principles say:

Appearing in Ads: If you lend your voice or name to copy in an ad unit (for instance, “My dream search engine would operate on my spoken word,”) disclose that fact and your relationship with the advertiser, if any, in a post or on a disclosure page.

I think that's absolutely right, and I wish all our authors did this before running the campaign. I think many did not because they thought that the ads would bear their name, and so disclosure would be self evident. I wish FM had worked more closely with authors in this case, considering all the possible outcomes and ensuring that they really thought through those possibilities before agreeing to be part of the campaign. We should have been more determined in asking each author to disclose the details of this campaign, and to consider their own comfort level with this type of campaign. I feel like we failed that group of authors, as well as our partner Microsoft, by including authors who, on second thought, wished they had not joined this particular conversation. To the best of my abilities, I will not let that happen again.

But to sum up, I refuse to declare conversational marketing a bad idea because of one storm. That's ridiculous. The creators and readers of this site and thousands of sites like it, along with commercial partners and new kinds of companies like FM, are helping to create a new form of media, one that will continue to evolve. One where all of us learn to trust not only the leaders of conversations - the authors - but also those who have been invited into the conversation - including marketers. That trust has to be earned and it has to be tended, but it's simply unfair to have a conversation where there is trust between author and audience, but advertisers are, as a rule, mistrusted.

So I, for one, want to say for the record that I trust Microsoft in this case. I truly believe they were trying to do something new, and I believe they had no malicious intent. I do not agree with those who regard marketers as a necessary evil. I think that approach reflects the worst baggage of traditional approaches to media, and I for one have dedicated my working life to eliminating it. Marketing can and should be useful, relevant, helpful, and add value to the conversation of a site. Did we learn nothing from the rise of Google and Adwords, after all?

To learn how to create new and useful forms of marketing, we have to try new things. If we step in it, we should step back, listen, incorporate lessons, and try again. That's what we'll do this time, and I look to you all for your help as we do.

June 22, 2007

Conversational Marketing Gets a Close Look

(Updates below: Responses from several FM authors)

ValleyWag today suggests that one of FM's conversational marketing campaigns is hurting the editorial integrity of our authors. It says that Microsoft paid them to write, which is simply not true. They were invited to join a conversation with readers about Microsoft's new theme, and they did so, but they didn't write about it on their blogs. The only money they get from Microsoft is from ads running on their sites, for which they're paid by the page view.

But it's a great chance to stop and talk about the rapid evolution of conversational marketing, the most important thing happening in our industry. So we offered this comment to Nick Denton, who wrote the ValleyWag item:

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Nick,

Welcome to the birth of conversational marketing.

It's making people like you and me, who came from the world of traditional newspapers, have to learn about three-way conversations. We have already witnessed the evolution of the two-way conversation among authors and readers that is replacing old-fashioned one-way journalism. Even our old employers (yours at the Financial Times, mine at The New York Times) are now actively bringing their readers into two-way conversations.

So the next step, naturally, is for marketers to want to join the conversation. It can be done in ethical, responsible ways, and FM's authors are among the first to figure out how to do it.

In the case of this Microsoft campaign, the marketers asked if our writers would join a discussion around their "people ready" theme. Microsoft is an advertiser on our authors' sites, but it's paying them only based on the number of ad impressions delivered. There was no payment for joining the conversation and they were not required to do it. They're not writing about this on their blogs, and of course several of them have been known to be pretty hard on Microsoft at times as reporters. They're talking about the topic, and readers joined that conversation.

We're carefully expanding conversational marketing based on all kinds of new ideas that are coming from authors, marketers and our sales reps. We're drafting a set of principles for conversational marketing that will help everyone, inside FM and across the industry, frame the discussion about how we do this the right way. And we're taking care at every step of the process to make sure we don't compromise the editorial integrity of our authors.

You're right to be skeptical; we should all be watching carefully to make sure we do this right. We certainly are.

Best,
Neil Chase
Vice President
Federated Media Publishing

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Updates: Several FM authors have also posted on this topic:

GigaOm: Om Malik
ReadWriteWeb: Richard MacManus
TechCrunch: Mike Arrington
A VC: Fred Wilson
Infectious Greed: Paul Kedrosky

June 21, 2007

FMers Can Go Low: Justin eeeks out a win at the Limbo

Wednesday afternoon we decided to celebrate a number of milestones (2 years in business, 2nd year anniversaries for Chas, Andre and Jen and overall incredible progress.) We figured nothing said fun like company sponsored Limbo and cocktails.

With impressive showings from everyone, notable contestants were Kaia, Jessica, Evan, Matt and Stephanie S -- Justin Watt is currently the reigning king of FM Limbo.

FM's Limbo King

We're waiting on some of our NYC and other remote workforce brethren to come into town and challenge the master.

Ninja Gets Ink

Knowledgeable Ninja to Fans: Search at Ask.com, Get Bonus Clips from ClickZ covers a program we at FM cooked up with our partners at Ask. It does a great job of explaining the kind of work we love to do here at FM:

Question: What do you get when you cross a ninja with one of those live-read radio sponsorships of old -- you know, the ad spots news hosts and celebs used to read on-air?

Answer: Ask.com's latest digital ad initiative.

The IAC/InterActiveCorp-owned search engine has paired with goofball video blog Ask a Ninja on an ad deal in which the show's host and namesake reads the sponsor copy himself -- and then offers bonus clips to fans who query Ask with special ninja-themed search terms. The three-month relationship, which also includes run-of-site display ads, was brokered by Ask a Ninja rep Federated Media Publishing.

June 19, 2007

Two Years

Fmlogo03-1-Tm An early logo, courtesy Mark Frauenfelder

Two years ago this month, FM was born (well, I started this blog in March, but we were funded in June, and that's when I had to go get us incorporated...).

Garage Ross The garage, courtesy Martin Shore, the owner.

We started, literally, in a garage (in Ross), and moved to a captain's house in Sausalito, then to our digs today. We've grown to almost half a billion high quality pageviews a month, 130 wonderful authors, and tens of millions of dollars in revenue on an annual basis. In two years. On less than $3 million in investment.

Capt House The Captain's House.

Current Bldg World HQ today. We also have offices in NY, LA, Portland, and soon Chicago....

Most importantly, we've helped define Conversational Media and Marketing, and helped scores of bloggers and independent site creators make a living by following their passions.

I'm very proud of our authors, employees, investors, and partners. Thanks everyone! Here's to the next two years....

June 10, 2007

Dell Rising

I have to say that Dell clearly is listening to its customers these days. Very good case study to watch. Here's an article from Ad Age on it....

June 1, 2007

Frank Leahy Joins FM

Frank
A big welcome to Frank Leahy, FM's new Director of Engineering. A 25-year veteran of Silicon Valley, Frank has worked at companies such as Intel, Apple, and Wired.com, plus a variety of startups (and a very interesting stint in Cornwall...). Most recently Frank was Director of Engineering at Genius.com, where he was instrumental in getting the SalesGenius product coded, tested and shipped. Frank lives in Mill Valley with his wife and two boys, and rides his bike to work most days.


Latest from Chasnote

Lenovo Finds Social-Network Marketing Sweet Spot

AdWeek profiles several brands that are using Facebook as a platform to amplify more traditional sponsorships, including Lenovo's work in Facebook to extend and reinforce its official sponsorship of the Summer Olympics. "Lenovo has created 100 athletes' blogs in an attempt to align itself with some less mainstream sports, such as field hockey and modern pentathlon. It gave the athletes laptops and video cameras to chronicle their preparation for the games. "'We wanted to do something that shows our tech prowess, not