IT and Business

Hard times for content based companies ?

book-burningToday’s online market is divided into those that provide content, on those who are brokers in the flow and aggregation and those who support the community that creates and manage the information.
You can make money on providing information for money (pay per view), you can display ads in the appropriate number of visits. No mention here of indirect forms, like promotion their own products.

Take the example of a XYZ company that has many employees who check the daily news in the market of medicines, they comment on the use and possible affects and interactions of them. The company produces hundreds of comments, which sells as MedicineBrowser application, makes it a leader on the market. There are also web portals of this company, divided into segments such as cardiology, neurology, etc., closely targeted to doctors and patients of the group of diseases. Internet advertising is going right way.
Country in which the story takes place, doesn’t provide any general and open registry of drugs with description, but there are plans to implement, because it is required ie. by EU directive. The service should be free. If such a registry will be created, with information similar to MedicineBrowser, XYZ will have serious problems, obviously company can make that product for government, but it is one shop, then will lose the market.

All potency of XYZ is at risk, it changes strategy, everything goes in the direction of increased pressure on the online products, also provides the work tools for individual groups such as pharmacists. The company also wants to create online content available on pay per view, what are the risks to content based companies in social media?

Blogs
Assuming that pharmacists will blog – and probably will. They will produce their own content (posts, comments, twitters) regarding new medicines. Other doctors will be commenting , expert blogs will surface, knowledge will overflowing into google. Company XYZ does not win with the medical community, there will be another place of . What to do? maybe try to arrange such a community around the MedicineBrowser brand ?

RSS Feeds
More and more users use the internet RSS feeds, collect them in the iGoogle type browsers. If company XYZ does not provide such a place where you will be able to aggregate the knowledge from different sites and do not give him the tools to develop community, at the end of the day XYZ will provide the information but it will not profit from ads and will not be able to identify their target groups.

Social Media
Facebook, LinkedIn and other sites of this type associate more and more members, is good idea to build another community? Should XYZ care about that? Why just not say “Come to us, if you already have a profile online, never mind, just tell us where and we will provide integration, “You have your friends on other networks, never mind, we will provide additional opportunities to broaden your friends especially those related to your work”.

Digg and others
Why do others have to be more innovative? Companies and, in fact, their peronel derives knowledge from the network, whether we do something to the aggregate and share knowledge? We do this by mail 🙂 ? We want to set new trends at the meetings and others do not know what you mean? Why not try to constantly share knowledge, discuss? Use more Digg, Twitter and others to come together to agree on something or not!

Summary
Today it’s easier to find good information on the Internet. We can check the quality of the author without reading his profile and career portfolio thanks to tools like digg, twitter, etc.
Communities and tools give missing added value to the content.

What’s Your opinion, which ways are available for XYZ ? Any other risks ?

Puff the Magic Dragon 🙂

Readings:
http://www.seobook.com/social-media-marketing-waste-time
http://www.micahfk.com/blog/2008/12/04/social-media-marketing-analysis/
http://www.ignitesocialmedia.com/social-network-traffic-analysis/

Discussion

2 comments for “Hard times for content based companies ?”

  1. I think good quality content will always have its price. SM will just help to filter out not-so-good content providers. Would you use community-generated nautical chart or pilot book for navigation?
    Question is, what are the quality dimensions? It is not so much speed anymore – Twitter beats other breaking news sources. It’s probably not a technical process, like CMS, or aggregation capabilities – that’s blogs and RSS and Digg. It must have something to do with knowledge and it’s application represented in the content.
    It means that content providers should re-assess the quality of their content in this new world and maybe their content generation strategy as well.
    And last but not least, do whatever is possible to avoid competition with user generated content – find a blue ocean once again and develop symbiotic relationship with the UGC. Easier said than done – I know.

    Posted by Grzegorz Balnis | February 9, 2009, 11:27 pm
  2. @Grzegorz Balnis
    You have absolutly right that the good content will survive. I will not use community-generated pilot book but gladly know it is worth to enter-user opinions about harbour. All my thoughts were only arranged to discuss how to use these new technologies to improve the quality of content.

    Posted by Marcin Zręda | February 10, 2009, 8:48 am

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