Web 2.0 and its Impact on the Media Industry

Web 2.0 and its Impact on the Media Industry Klaus Tochtermann TU Graz & Know-Center Graz & Joanneum Research 16. Mai 2007 http://www.know-center.at © Know-Center - gefördert durch das Kompetenzzentrenprogramm Web 2.0 – What is that? “Putting The ‘We’ in Web” ‘…the Living Web’ Newsweek, 4/3/2006 “Web 2.0 is not a heady financial bubble ready to burst, it is a hot air hype balloon ready to deflate.” Donna Bogatin 8/2006 2 (Andy Budd) http://www.know-center.at 16. May 2007 © Know-Center Web 1.0 vs. Web 2.0 3 (Dion Hinchcliffe) http://www.know-center.at 16. May 2007 © Know-Center The World of Web 2.0 4 http://www.know-center.at 16. May 2007 © Know-Center Web 2.0 and its Users http://www.ard-werbung.de/showfile.phtml/ 04-2007_haas.pdf?foid=20863 About 50% of the Web 2.0 users are between 14 to 29 years old About 50% of the Web 2.0 users are well educated About 40% work in education 5 http://www.know-center.at 16. May 2007 © Know-Center State of the Blogosphere http://technorati.com/weblog/2006/11/161.html Technorati is currently tracking more than 57 million blogs Steady increase but slower growth of blogosphere About 100.000 new blogs a day About 1.3 million posts a day on 30 day average About 54.000+ posts per hour 6 http://www.know-center.at 16. May 2007 © Know-Center Blogosphere Integration of blogs and traditional media sites continues There are 12 blogs in the top 100 traditional media sites When reaching the top 5000, blogs take over 7 http://www.know-center.at 16. May 2007 © Know-Center Blogs faster than News Agencies http://www.verfolgerblog.de/2006/10/11/blogs-schneller-als-reuters/ 8 http://www.know-center.at 16. May 2007 © Know-Center Blogs higher ranked than NY Times http://www.kottke.org/06/01/blogs-versus-the-ny-times-in-google 9 http://www.know-center.at 16. May 2007 © Know-Center Web 2.0 does not sleep… 10 http://www.know-center.at 16. May 2007 © Know-Center Micro-Blogs http://twitter.com/ Anywhere anytime communication Free of charge services Uploading of 140 strings texts via web, chat or mobile 11 http://www.know-center.at 16. May 2007 © Know-Center Twitter and News Agencies http://twitter.com/reuters 12 http://www.know-center.at 16. May 2007 © Know-Center Twitting vs. Blogging? http://www.kottke.org/07/05/growth-of-twitter-vs-blogger 13 http://www.know-center.at 16. May 2007 © Know-Center Personal News Aggregators http://pipes.yahoo.com Personal news aggregation 14 http://www.know-center.at 16. May 2007 © Know-Center Create your own „information pipe“ URLs Free of charge Search Term Based on „Web2.0“ RSS feeds and Yahoo Search 15 http://www.know-center.at 16. May 2007 © Know-Center Pipe Output 16 http://www.know-center.at 16. May 2007 © Know-Center Shift of Paradigm and the Big Brother… 17 http://www.know-center.at 16. May 2007 © Know-Center Web 1.0 vs. Web 2.0 Shift of Paradigm (1/2) Web 1.0 Web 2.0 Governance Top down Bottom Up Focus Producer of Content User of Content (e.g. news agencies) Information Search and Browse Publish and Discovery Subscribe Information Retrieval Objects, pages relationships documents 18 http://www.know-center.at 16. May 2007 © Know-Center Web 1.0 vs. Web 2.0 Shift of Paradigm (2/2) Web 1.0 Web 2.0 Marketing Push, Contextual Pull, Personalized Control of content Publishers Authors Structure of Content Documents, Pages Tagged Objects Applications Closed, Proprietary Open, Standards 19 http://www.know-center.at 16. May 2007 © Know-Center EPIC Scenario The Media World in 2015 http://epic.makingithappen.co.uk/new-masterfs1.html 20 http://www.know-center.at 16. May 2007 © Know-Center Analysis Unconscious transfer from voluntariness to third- party control Increased content provision by non-professional content providers Increasing importance of Personalization Collective Intelligence Information Aggregation Location-based Services 21 http://www.know-center.at 16. May 2007 © Know-Center Innovation based on Tradition 22 http://www.know-center.at 16. May 2007 © Know-Center The Content-Community-Service Triangle Content Community Services 23 http://www.know-center.at 16. May 2007 © Know-Center Knowledge Community Alexander Mash-up of Presse-Online and Brockhaus Content Alexander has been open to 781 registered community members since Sept. 2006 Focus was on integrating content services with community services Survey conducted in Feb. 2007 15% response rate 24 http://www.know-center.at 16. May 2007 © Know-Center Main Results of Survey Community service distracts members from using content High importance of quality of content Trust depends on qualification profile of authors (85%) and recommendations from community members (64%) Unobtrusive advertisement is accepted only 21,3% would not accept ads. Content provision according to personal interests/needs very well accepted 79% consider this an added-value 25 http://www.know-center.at 16. May 2007 © Know-Center Copy-Paste will not work Isolated content and services become difficult to sell Why: Available elsewhere Little acceptance for services without clear benefits for customers (e.g. blogs for customers) Why: Available elsewhere Communities are only successful if joint objectives exist Why: Otherwise no incentive for knowledge 26 transfer http://www.know-center.at 16. May 2007 © Know-Center Strategic Recommendations Change role from fast follower to early adaptor to leading innovator Open innovation concepts to include your partners, customers etc. in strategic decision processes Capitalize on your branding and reputation High quality and high visibility Quality Assurance Services Information Quality and Content Provider Quality 27 http://www.know-center.at 16. May 2007 © Know-Center Strategic Recommendations Don’t copy Google/Yahoo/Wikipedia etc. Take advantage of weaknesses of Google e.g.