Embracing The Data Layer Joanne Bradford Demand Media

When this WSJ article came out last month, none of this was new news to those of us in the media industry. The sheer volume of content has changing the equation for even the biggest players in the market. “It's a simple rule of any market. The more information that is created, the more the value is reduced.”

But these “new economics” aren’t new – we’ve seen them before But these “new economics” aren’t new – we’ve seen them before. They are an exact replica of the state of the music industry before it was fundamentally transformed by data. When the music industry started to implode in the early 90s, the industry and artists alike scrambled to hold on to the value they saw slipping through their fingers at an alarming rate. Looking back, it’s easy to see now that those who embraced data are the ones who emerged ahead of the game. Artists like Justin Beiber created a living, breathing 360* experience for their fans. Data has changed every imaginable industry – from politics to advertising to manufacturing – with one notable holdout: content.

The sheer volume of available content has driving its value down so far, it’s almost zero. How do we bring back the value? How do we elevate content so that its no longer a fungible commodity? CONTENT = COMMODITY

DATA + CONTENT = VALUE The answer is data. Data layers for written content, like user feedback, circulation/views, follower numbers, and referral rates are all directly responsible for driving the value of content up. So it follows that data could ultimately deliver both economic and authoritative value to the top tier experts who create content. In short, data could drive up the value of content – in a content marketplace that has been collapsing over the past 10+ years. The only way to bring back value is by using data. In short: data or die DATA + CONTENT = VALUE

EXPERTISE = OPPORTUNITY Why is it that those who create content – writers in particular – are one of the last groups of creators to actively embrace the data layer? Immersion in the layers of data that are available could improve what they produce for their audience. Given that every element of the digital marketplace – websites, apps, and whatever’s next in digital media – needs written content, why is there no evidence that writers are actively using data and insights to help get the content they produce to the next level. What do writers have to do today to reclaim their value and get paid more? One place to start would be to separate the idea of objectivity and expertise. Objectivity is a critical element of news writing, and news is a an incredibly important type of content. But what about all the other content – the vast amount of writing – that fuels our insatiable demand for digital information? That’s where the experts come in. And experts – real, bona fide, reliable, influential experts – get paid handsomely. Which brings me back to data. Because data can tell us which experts are worth our time. EXPERTISE = OPPORTUNITY

WHAT IS THE DATA LAYER FOR … WRITERS? What do writers have to do today to reclaim their value and get paid more? One place to start would be to separate the idea of objectivity and expertise. Objectivity is a critical element of news writing, and news is a an incredibly important type of content. But what about all the other content – the vast amount of writing – that fuels our insatiable demand for digital information? That’s where the experts come in. And experts – real, bona fide, reliable, influential experts – get paid handsomely. Data can tell us which experts are worth our time. As an example, The NYT uses data (economic, GDP) to inform what they cover, but not what they publish. So, for example, they are as likely to assign a writer to cover Apple as Microsoft, despite the fact that the data clearly shows them that stories about Apple receive 10x the click-through than stories about Microsoft. Where the NYT may feel it has an obligation to cover all players in a category equally, writers who specialize in Apple coverage (in this example) have a distinct advantage in terms of exposure. Writers who specialize can capitalize on the missed opportunities built in to the traditional media model Oprah is another great example. She’s gone from the ultimate generalist, with a behemoth broadcast empire – to the ultimate specialist, with an almost limitless network of sub-specialists. Big brands are engaging their consumers via storytelling that doesn't fit into the TV-commercial or print-ad format – and they’re doing it with content online, on social media channels, and via mobile. They’re generating a vast demand for specialized, not objective, content. And they’re measuring the way that content performs at the most granular possible level. That is what it takes to succeed in today’s content market. Writers who are able to function as their own social media strategists - who understand, and effectively use the data related to their work will succeed. Those who don’t, will fail. A writer’s individual data is going to become as critical to their professional success as their Strunk&White. Their own actions, for the first time in history, can directly – and measurably – increase the value of their work. Specialization and expertise Social media engagement Standardized credibility

WHAT IS THE DATA LAYER FOR … PUBLISHERS? Which is where Demand Media comes in. We’re in the business of matching the right expert with the right content – and the delivering that content to the right consumer. And we use data to make every decision required along the way. In fact, recently we updated one of our flagship sites, LIVESTRONG.COM to provide even more specialized information designed for men and women specifically. And that content is available online or on the go. As another example, Cracked has pioneered the idea of high return content. It’s called the Writers Room. [need image] – it’s actually one of the things I like to point to whenever people call Demand Media a content farm. Cracked has cracked the code of producing the minimal amount of content to produce the highest possible return. It’s the opposite of a content farm. It’s elegant. And it works. Another example – we recently acquired a company called IndieClick [need image] – which has a knack for unearthing the kind of underground content that tastemakers love. How do they do it? Data. Mountains, and mountains of data. We’ve also done things like adding social ranking tools for our writers – precisely because we believe writers need better access to data to better serve our consumers. I don’t think the day is too far off when publishers will only hire writers that have expertise in data. Provide a platform Promote top performers Monitor and measure

WHAT IS THE DATA LAYER FOR … SYNDICATORS? Identify patterns Generate recommendations Eliminate friction

Embracing The Data Layer Joanne Bradford Demand Media