Remembering Allie through posts
from my blog.

The Essays:


Selling Against Ourselves
6/27/2006

The On-Demand Trap
5/24/2006

The Real Threat to Local Broadcasters
4/24/2006

10 Days That Unexpectedly Changed Me
4/16/2006

Investing in a Local Future
3/27/2006

New Metrics and Principles
3/5/2006

The Ammunition Business
2/2/2006

The Economy of Unbundled Advertising
1/3/2006

The Unbundled Awakening
12/22/2005

Trusting the Audience and the Readers
11/28/2005

The Unbundled Newsroom
11/9/2005

The Remarkable Opportunities of Unbundled Media
11/1/2005

The Jewel of the Elites
10/3/2005

The Matter of "Getting It"
09/15/2005

The Elevation of Experience
07/05/2005

Chaos at the Door
06/22/2005

Stations Must Embrace Personal Tools
05/30/2005

A Wolf in Aggregator Clothing
05/20/2005

The Web's Paradox of Power
04/6/2005

The Convergence Advertising Trap
03/10/2005

The Devaluation of Information
02/22/2005

Searching for the Bottom
02/15/2005

Re-thinking News Promos
01/26/2005

Convention versus the Internet
01/22/2005

2005: A Year of Trouble for Broadcasters
12/29/2004

A Broadcaster's Christmas Carol
12/13/2004

Overcoming Formula Addiction
11/15/2004

When Supply Exceeds Demand
09/27/2004

Beyond Portal Websites
09/07/2004

Local TV's New Deadlines
08/05/2004

The Power of Attraction
08/02/2004

The Value of
Local Search

07/20/2004

Beyond the World Wide Web
07/02/2004

Of Liberals and Networks
06/13/2004

The Assumption of Trust
05/27/2004

The Busine$$ of RSS
05/21/2004

News As A Sporting Event
04/27/2004

The Genius of OhmyNews!
04/15/2004

The New Public Relations
03/24/2004

TV's Measurement Conundrum
03/12/2004

The Demographic Candle
02/17/2004

The Unobvious Result of the Web
02/03/2004

The Future is Multimedia
01/26/2004

News Is A Conversation
01/13/2004

Beyond RSS Aggregators
12/31/2003

2004: Time For Action
12/17/2003

Argument Versus Objectivity
12/05/2003

Chaos in the
Feedback Loop

11/25/2003

TV's Four New Media Mistakes
11/17/2003

The Live Coverage Revolution
11/07/2003

News Anchors:
An Endangered Species

10/30/2003

The Challenge of Advertising
10/22/2003

The Defensive Newsroom
10/15/2003

Participatory Journalism
10/10/2003

Technology Is Not
The Enemy

9/29/2003

Reinventing News for the 21st Century
9/24/2003

The Rise of the
Independent Video Journalist

9/1/2003

The case for MTV
8/11/2003

TV Viewers and Internet Users Are Different
7/18/2003

Is TV News Giving Away The Future?
5/1/2003

A Postmodern
Wake-up Call

12/14/2002

The Lizard on America's Shoulder
9/1/1998

Interviews:


Lisa Lambden
8/09/2005

Brian McLaren
5/24/2005

Tom Kennedy
3/22/2005

M.D. Smith IV
2/25/2005

Ed Cone
12/27/2004

Peggy Phillip
08/25/2004

Tim Hanlon
06/21/2004

James Marsh
04/01/2004

What is RSS?

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With the exception of the essays entitled "TV News in a Postmodern World," all material created by Terry L. Heaton and included in this Weblog is licensed under a Creative Commons License.
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"Postmodernism is a change-or-be-changed world. The word is out: Reinvent
yourself for the 21st century or die! Some would rather die than change."
Leonard Sweet, cultural historian.

11/02/2006 Entry: "Attack of the hyperlocal outsiders"

When I write that the real Media 2.0 business disruption for broadcasters is the personal media revolution fueled by outside internet pureplay companies, the assumption is that these people are after local advertising dollars. Gordon Borrell projects that as overall online ad revenues continue to increase, the split between local and national dollars will reach parity by 2009 (it's about 70% national currently). In order for that to happen, local ad spending online will be exploding, and while this is good for local media, it's also a target for the Googles, Yahoos and MySpaces of the world.

The big boys are either doing this themselves or buying up smaller companies who've created nice applications for the local space. Everywhere I look, I see new businesses springing up that are built to appeal to people at the local level, and this is a very dangerous proposition for incumbent local media players -- many of whom think we have time to sort all of this out. We don't.

One new entry into this space is Outside.in, a wonderfully conceived piece of software that has the potential to really disrupt local media. I'll let my visionary friend George Johnson tell you about it:

It’s built around many of the driving principles and tools of the social web: blogs, geographic and category tags, providing users with tools to generate results that are as specific and relevant as possible, and the recognition that content, specifically hyperlocal content, has a long tail. The last conceit and core principle of outside.in is the most compelling part of the application. Johnson (founder Steven Johnson) explains:
Local news often has a long-shelf life. One thing both blogs and traditional newspapers share is that they are organized around time, with the latest news given priority. But a lot of neighborhood information is news that stays news: a parent's comment about the science program at a local school is just as relevant six months after it was posted; a guide to gay-friendly bars could be useful for years. That's why outside.in is designed not just as a "latest headlines" service; it's also an evolving neighborhood encyclopedia, capturing all the things that have been said about specific places.
Outside.in aggregates hyperlocal content (posts written by hyperlocal bloggers and tagged by geography)...And...is driven by select content written by authors with specific knowledge of what’s going on in their own back yard and a demonstrated ability to report it in a compelling way whether they're amateur or professional.

The result is a relevant and engaging experience driven by place.

We had better be paying attention to the thinking behind these types of projects, because it's pure Media 2.0, and we need to do it better. Outside.in is a very cool piece of technology, but -- at least for the time being -- it suffers from the same thing that any pureplay local venture must address: the cost of marketing. Local incumbent companies aren't restricted by this, so we have a (temporary) competitive advantage.

George Johnson, by the way, has his own hyperlocal platform, Until Monday. He's also behind Buffalo Rising, another local new media site.

Meanwhile, the Financial Times reports that Google will make more advertising revenues in the UK this year than Channel 4, the second largest broadcaster in the country.

The US search engine group would "extract" about £900m in advertising from the UK market in 2006, (channel 4 chief executive) Andy Duncan estimated, compared with Channel 4’s annual advertising income of about £800m.

"People need to wake up and realise that this is not just a cyclical issue. There is deep structural change taking place," he told the Financial Times.

"If we want to protect the fantastic legacy of UK broadcasting, we need to wake up to this sooner rather than later."

Broadcasters could not afford to be "in denial" about the "fundamental change" to their industry, Mr Duncan warned, likening the phenomenon to global warming.

The threat to all broadcasters is evident. We either move into and seize Media 2.0 at the local level, or, to paraphrase Ross Perot, the sucking sound we hear will be "our" revenues leaving our markets (bound for Mountain View, CA, home of Google).

And I will say it again: we can spend our resources on multi-platform distribution opportunities all we want, but it doesn't address the real threat we're all facing. Remember what my friend Bob Papper from Ball State University says, "Television didn't kill magazines, because they took their readers; they killed magazines, because they took their advertising." Think about it.

Replies: 963 comments

What's your opinion of the WorldNow solution for local television stations? I have nothing to do with WorldNow. I just came across it in my research.

Posted by Randy Hoffman @ 11/02/2006 05:50 PM CST

This is one of the areas that has really had me interested for a long time.

It seems that this will be the ultimate ad machines for whoever wants to market through them.

Those who capture the local audience will be more difficult to unseat than any company at this time.

We haven't even really began to see the disruptiveness until this starts to take place.

Posted by Gary Bourgeault (bizofshowbiz.com) @ 11/02/2006 11:12 PM CST


"The future is not something we enter. The future is something we create."
Leonard Sweet