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Truth and Trust in the Web 3.0
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Truth and Trust in the Web 3.0
Here comes a
funny story. I recently spoke to Julien Smith and Chris Brogan, super-cool
Social Media innovators and authors of the NYT bestseller "Trust
Agents". During the interview, I asked them "What is a Truth Agent
for you" - instead of asking "What is a Trust Agent". Major
mistake! Was it really?
The reason for
my fauxpas was that I was writing this blog post right here at the same time
about truth in the Web 3.0. And my little glitch turned out to be pretty
inspiring. Because trust and truth are not aliens to each other, but siblings
in spirit.
An important
condition for the rise of the Web 3.0 - a web in that everyone becomes a media
entrepreneur through user-generated business technologies - is in an increased
effectiveness of Social Media connectivity. To suceed as a knowledge producer
or creative author online, you need to get the right audience, and build a
lasting bond between you, other content creators of your kind, and your
audience. Social Media is the key. Yet, after conducting a lot of research,
analysis and thinking for my next project, "Social Media Magic", an
interesting point becomes clear: success in Social Media does not so much
depend on the right use of technology. Actually, it's pretty hard to misuse the
current, very simple technologies. It is much more about doing the right things
with it in regards of content. If you tweet, tweet the right things. If you
blog, blog the right things. If you create and manage your group, create the
right group and manage it in the right way. Forget about finding the best
technology (just use what's there), and working on design. Do the right things.
Which finally
brings us to the decisive question: what is the right thing to do in the Social
Web? Here, Chris and Julien hit the right button: it is all about trust. You
need to do things that increase trust. And In a world in that everyone can talk
to everyone else, and millions of marketers try to sell something to anyone
they can get, you need to earn your trust.
From your
perspective - the perspective of someone who wants to attract and keep the
right people - the most important component for building trust is to become
truthful. If you tweet, don't just tweet to send out a link to your product. If
you blog, don't just blog to sell. People do not read blogs to buy anything in
the first place - they trust you to write something that is of value for them.
The central point of the Social Web is that people trust each other to deliver
content that has an inherent value, and serves the primary purpose of
delivering this value. Not to sell. Not to get leads.
What has this
to do with truth? Well, if someone views your content, you obviously implicitly
promised something he or she found intriguing. And if you did so, you need to
deliver on this promise - otherwise, you didn't tell the truth. If I promise an
article "Truth and Trust in the Web 3.0" and then just write: truth
and trust are very important - buy my book and you will get the big
picture", I implicitly lied to you.
Of course, the
concept of truth reaches further than that. It is also about your products. The
amazing thing is that the Social Web reduces the distance between people in an
unprecendented way - which not only means you can talk to much more people directly,
but also that you cannot escape if you do something wrong. If you screw up a product,
people will know you. They will stay in your networks. And they will know you
suck. On the opposite, with increased closeness, delivering value is being much
more rewarded than in an offline consumer world. Your fans, partners and
customers will spread the word about your product. They will praise you, your
truthful approach, and the quality you deliver.
Yes, I believe
in 2010 the world has become a better place. Because today, human networks
become larger and yet more effective. I always viewed the old behavioral
patterns in marketing and sales as slightly desperate, as something driven by
people who naturally experience constant rejection by strangers, and who in
return decided to trick their way into a short-term win of trust - only to see
that the abuse of trust leads to the termination of the relationship. In the
new world of Social Media, I believe that the classic from of marketing where
you pitch something in 30 seconds to strangers is over, and everything connected
to it is, too. Success in the Web 3.0 is about focusing on quality products,
delivering quality content with intrinsic editorial value around them, and
talking the truth about both.
This means: if
you are a small business, or author, or creative, don't try to convince people
all the time. Focus on making your product as high-value as possible, get it
out, create content around what you really care about, and start building a
Social Media publishing outlet.
If you are big,
radically shift your marketing budgets into creating high-quality,
customer-centric products, including consumer insight research and innovation,
and build high-quality editorial online power in the topics of strategic brand
value.
Building Truth
and Trust in the Web 3.0 means to re-assign your marketing dollars and -efforts
into product value improvements, and producing the highest possible content
value in your Social Media outlet.
It's a radical
concept. But radical is also the change the world of marketing and media is undergoing
right now. Rather than being scared, all of us should be excited about it. Because
in the end, we will have more truth and more trust between all of us.
Here comes a
funny story. I recently spoke to Julien Smith and Chris Brogan, super-cool
Social Media innovators and authors of the NYT bestseller "Trust
Agents". During the interview, I asked them "What is a Truth Agent
for you" - instead of asking "What is a Trust Agent". Major
mistake! Was it really?
The reason for
my fauxpas was that I was writing this blog post right here at the same time
about truth in the Web 3.0. And my little glitch turned out to be pretty
inspiring. Because trust and truth are not aliens to each other, but siblings
in spirit.
An important
condition for the rise of the Web 3.0 - a web in that everyone becomes a media
entrepreneur through user-generated business technologies - is in an increased
effectiveness of Social Media connectivity. To suceed as a knowledge producer
or creative author online, you need to get the right audience, and build a
lasting bond between you, other content... more
Web 3.0, Social Media, Trust, Truth, web 3.0
Meaning, the Web 3.0, and the Semantic Web vs. User-generated business
When I discuss the Web 3.0 with friends or viewers, they often ask me: why is Sophotec taking on a topic that already seems being occupied by the term "Semantic Web" - a concept that seems to be competing with "User-generated media business"?
First of all, there is a little overlap: the Semantic Web - a term I don't like at all because it lacks a clear definition and is not supported by any meaningful outline - somehoe connects everything in a smart way. User-generated business techchnologies have to improve the level of effectiveness in connecting the right people and the right content with each other.
But second, and most importantly, I believe that all of us - authors and readers engaged in futurism, the web and innovation - need to become more meaningful when shaping and defining terms. Often, I get a cynical smile when I mention the Web 3.0. Too many people abuse powerful terms like this, or Social Media, to simply say something. Anything. It is important that we do not jsut create phrases that sound good, but take care that we thoroughly derive the definition of new phrases like the Web 3.0. That they come from somewhere (the history of the Web, the Web 1.0, and the Web 2.0), and that they point towards something of meaning. The Semantic Web doesn't - it's simply the idea of some smart web that knows everything. The Web 3.0 as user-generated business builds on a clear historic trajectory, and points out a well grounded roadmap to how we can achieve trillions of additional GDP growth, as well as significant social progress and cultural enrichment. The Semantic Web, on the other hand, is a concept that breaks with the trajectory of the Web 1.0 and Web 2.0 as aspects of social change rather than changes in software technology, and is both blurry and inconsistent in terms of what it is or will be, how it works and, before all, what the social impact will be compared to the Web 2.0 and Web 1.0. The Web 2.0 was not a new technology, but a new way to utilize web technology in social terms. It describes a major social and civilizational shift in the way we interact, produce and share content - and any definition of the Web 3.0 should follow this social perspective to remain consistent and meaningful.
The way to get to a more meaningful definition of jey phrases is to first think about the meaning of things, and engineer our concepts and believes accordingly. A way that delivers a vision, grounded in facts and history, for a better future. This is why we are here - to connect the dots, make them meaningful, and create the blueprints for a future that matters to all of us.
When I discuss the Web 3.0 with friends or viewers, they often ask me: why is Sophotec taking on a topic that already seems being occupied by the term "Semantic Web" - a concept that seems to be competing with "User-generated media business"?First of all, there is a little overlap: the Semantic Web - a term I don't like at all because it lacks a clear definition and is not supported by any meaningful outline - somehoe connects everything in a smart way. User-generated business techchnologies have to improve the level of effectiveness in connecting the right people and the right content with each other.But second, and most importantly, I believe that all of us - authors and readers engaged in futurism, the web and innovation - need to become more meaningful when shaping and defining terms. Often, I get a cynical smile when I mention the Web 3.0. Too many people abuse powerful terms like this, or Social Media, to... more
Target group? Target mood!
Everyone
talks about target groups. I did it hundreds of times with my clients when I
worked in advertising. It was important. And it still is. But recently, while
we executed a Social Media campaign, I realized something: knowing your target group
is not sufficient any more. Think about facebook: everyone knows that facebook
advertising has a terrible sales conversion. The same is true for MySpace, YouTube
and many other social networks or sharing sites. The reason can hardly be found
in the concept of target groups: these are the right people, targeting is more
precise than in TV, and they are in general willing to buy your stuff. But then,
why does Social Media advertising fail?
We
conducted a non-representative study and pondered about the results. And here is
my take: I call it the target mood paradigm. If you target the right people,
but in the wrong situation, they are the right people in the wrong mood. When I
talk to my friends, I don’t want to hear about your great car, or mobile phone,
or bathroom tissue – this is, as long as I don’t talk about it with my friends. It is all about hitting the right target mood!
While
this realization might be as old as marketing itself, it becomes much, much
more relevant with media downfall, and the shift towards Social Media. Because
now, you as a marketer need to choose where you engage people. And the bottom
line take-away is: don’t just enter the blogs and conversations where you meet
the right people, but the content areas in that they are in the mood for taking
the decision you want them to make. And: don’t just aim for viral power and
reach, but consider in what context and mood people view your content. YouTube is
one of the best examples: while many achieved huge reach with funny little
clips, it becomes nearly impossible to translate this reach into tangible
business results. Because the funnier you are, the more your clip becomes a
piece of entertainment, and puts people in the entertainment and sharing mood.
The most unlikely mental environment to take a purchasing decision...
Everyone
talks about target groups. I did it hundreds of times with my clients when I
worked in advertising. It was important. And it still is. But recently, while
we executed a Social Media campaign, I realized something: knowing your target group
is not sufficient any more. Think about facebook: everyone knows that facebook
advertising has a terrible sales conversion. The same is true for MySpace, YouTube
and many other social networks or sharing sites. The reason can hardly be found
in the concept of target groups: these are the right people, targeting is more
precise than in TV, and they are in general willing to buy your stuff. But then,
why does Social Media advertising fail?
We
conducted a non-representative study and pondered about the results. And here is
my take: I call it the target mood paradigm. If you target the right people,
but in the wrong situation, they are the right people in the wrong mood. When... more
Social Media, Social Web, Targeting, Branding, Marketing
Social Media marketing, economic progress and the wisdom society
 As
you know, this blog is a place for the bigger picture. It is about the future of
the web and building the foundations of a knowledge civilization. That’s what
excites you and me. It is not about selling chocolate bars more effectively. Or
is it?
Besides
my personal background and excitement with Social Media Marketing in the
context of strategic brand building campaigns, I believe in a higher meaning of
Social Media Marketing. It originates from my discussions with the members of Sophotec’s
Executive Science Network, especially with Karen Halpert of Mastercard and her “Big
Marketing” approach. In this approach, we developed a concept in that Marketing
is much more than selling stuff. It is actually to core of economic value
creation: aligning supply to demand, and taking care companies do what people
want. Other expressions for this basic principle are customer-centric
leadership, outside-in perspective and brand alignment.
In
this most fundamental perspective on marketing, Social Media changes the very
fabric of what we are doing today. It changes the way people connect with each
other, exchange information, build social clusters and take decisions.
With
this new, breathtaking technological and social framework, the very core of Big
Marketing changes, too. If the task of marketing is to connect supply and
demand – and, even more important, build a relationship between producer and
consumer to make sure the producer’s resources are strictly aligned to the
consumer’s needs and therefore to efficient value creation – and Social Media
is all about a new level of connectivity, it marks a major shift in the economic
fabric of our world.
Social
Media enables us to connect to others in a much more precise, effective way,
and the same is true for connecting supply and demand. The principles of Social
Media Marketing and its success factors are therefore of vital importance for
building the Web 3.0, and empowering everyone to become a media entrepreneur. The
rules and principles we identify through large scale research projects like Sophotec’s
Social Media Magic with over a hundred case studies can be translated into strategic
blueprints and technologies on platforms like Klatcher.com, and help everyone
to connect more effectively with the people who need your products. To connect knowledge
and knowledge demand. And finally, to connect minds. Deciphering the principles
of the Social Web therefore becomes a stepping stone to building the Web of
Minds.
That’s
why Sophotec not only enjoys working with clients on Social Media Marketing
strategies and conducts knowledge development projects like Social Media Magic,
but embraces it as a major strategic opportunity on our way to the wisdom
society.
As
you know, this blog is a place for the bigger picture. It is about the future of
the web and building the foundations of a knowledge civilization. That’s what
excites you and me. It is not about selling chocolate bars more effectively. Or
is it?
Besides
my personal background and excitement with Social Media Marketing in the
context of strategic brand building campaigns, I believe in a higher meaning of
Social Media Marketing. It originates from my discussions with the members of Sophotec’s
Executive Science Network, especially with Karen Halpert of Mastercard and her “Big
Marketing” approach. In this approach, we developed a concept in that Marketing
is much more than selling stuff. It is actually to core of economic value
creation: aligning supply to demand, and taking care companies do what people
want. Other expressions for this basic principle are customer-centric
leadership, outside-in... more
Win a Web 3.0 book!
In recent days, a series of friends and readers asked me two questions:
1) "Can I get a free copy of Web 3.0 - the book?" and 2) "How can I become a guest author at sophotec.com?"
OK, first of all: the fastest and best way to get Web 3.0 - the book is to BUY it, because it provides incredible insights, visual models and inspiration for only $29. It is unique both in content and form. You will not find anything comparable anywhere. Second: you can always submit articles to jb@sophotec.com - if it's on strategy and supports our pursuit of progress in knowledge, the web and Social Media, I will be happy to publish it.
But you are right - it would be nice to bring these two points together. So from now on, we will give away one book for free to the best article on the Web 3.0 that gets published on sophotec.com/blog. It will be awesome to get all your ideas and thoughts, and I am really excited about getting your mails!
Here are the rules:
- your post have to deal with the Web 3.0 and why everyone becomes a media entrepreneur. It can be about online publishing, blogging, monetization, visionary stuff, social impact or anything else connected to the Web 3.0.
It must meet the following criteria:
- 300-600 words
- Include a picture (profile pic, illustration etc. - no copyright violations, please)
- Describe your case, your budget, what you did, how it worked, and what you think were your success factors
- Provide a short (max. 3 lines) description of yourself, your blog etc. and back-link URL
- We only publish original content that has not been published before.
If you meet these criteria and match the editorial standards, you will be published. Among the published articles, the post with the most views and comments wins. Each comment counts as 10 views - hey, and no cheating, please.
I will answer every submission, promised!
Let the games begin :)
Cheers
Johannes
In recent days, a series of friends and readers asked me two questions: 1) "Can I get a free copy of Web 3.0 - the book?" and 2) "How can I become a guest author at sophotec.com?"OK, first of all: the fastest and best way to get Web 3.0 - the book is to BUY it, because it provides incredible insights, visual models and inspiration for only $29. It is unique both in content and form. You will not find anything comparable anywhere. Second: you can always submit articles to jb@sophotec.com - if it's on strategy and supports our pursuit of progress in knowledge, the web and Social Media, I will be happy to publish it. But you are right - it would be nice to bring these two points together. So from now on, we will give away one book for free to the best article on the Web 3.0 that gets published on sophotec.com/blog. It will be awesome to get all your ideas and thoughts, and I am really excited about getting your mails!Here are the rules:... more
Copyrights in a value-driven Web 3.0
Recently,
I spoke at BIL 2010 in Long Beach about the Web 3.0, and got some interesting questions
from the audience. One of them was: “How do you deal with copyrights in the Web
3.0 and protect people who pour more energies into creating high value content
from being pirated?”
This
question touches one of the most exciting aspects of a web in that everyone
becomes a media entrepreneur. To better understand it, we first have to get a clearer
picture of the copyright problem in general. This problem is based on a simple
perception: if you have something valuable, and sell it, people can steal it.
And then you cannot sell it anymore. With content, it’s even worse than with
physical goods, because simply looking at something is enough to “steal” it. Technically,
a copyright violation starts even if you allow too many people to watch your
DVD. Based on this perception, the traditional media industry has created a
major effort to hunt down the violators – only to find out that they have to
basically hunt down everybody, including their kids, spouses and themselves.
Which
leads us to an interesting question: is honoring copyrights a civilizational meme
comparable to, let’s say, honoring physical property that only takes some time
to diffuse through our social conscience – or is it fundamentally inoperative?
The
problem is that stealing content doesn’t even match the definition of stealing:
you are not taking anything away. The other one still has it. The damage you do
is highly virtual: it is the hypothetical opportunity cost of not buying the
content because you already have it.
I
think the ethical debate is pretty useless, because it’s simply not a pragmatic
step to solve the problem. Instead, I propose to think a little bit out-of the
box. Content is different from physical goods, and it doesn’t make sense to
think in the wrong reference system. If you have created a piece of content,
you don’t want to protect it from copyright violations – you want to monetize
it as much as possible. The monetization of content requires marketing and
monetary transaction. Utilizing parts of your content for free distribution
actually increases your traffic and the awareness for your stuff, so it’s a
good thing. On the other hand, if everyone can access the whole thing for free,
you don’t earn money except for some advertising dimes. My experience is that the
online content business is much more about convenience than it is about criminal
or non-criminal intent. People want to view your content, they are willing to
pay for it if they trust it’s good, but if it is too easy to get it for free or
it is too expensive to buy, then they go for piracy. In the end, it is about
figuring out the balance between freebies, the protection of your core content
products by practical means (e.G., print the buyers name on the document), and
maintaining a personal and friendly relationship with your community. Two
things are definitely the wrong thing to do: hiring a lawyer to go after
copyright violators, and not allowing anyone to see anything before they pay.
Because they won’t.
There
is no simple solution – but there are solutions. Go with the flow, avoid major disruptions
of your viewers experience, and elegantly intertwine premium content with a free
flow of sniplets that engage, entertain and intrigue.
That’s
at least how I do it, and it works so far :)
Recently,
I spoke at BIL 2010 in Long Beach about the Web 3.0, and got some interesting questions
from the audience. One of them was: “How do you deal with copyrights in the Web
3.0 and protect people who pour more energies into creating high value content
from being pirated?”
This
question touches one of the most exciting aspects of a web in that everyone
becomes a media entrepreneur. To better understand it, we first have to get a clearer
picture of the copyright problem in general. This problem is based on a simple
perception: if you have something valuable, and sell it, people can steal it.
And then you cannot sell it anymore. With content, it’s even worse than with
physical goods, because simply looking at something is enough to “steal” it. Technically,
a copyright violation starts even if you allow too many people to watch your
DVD. Based on this perception, the traditional media industry has... more
The user-generated media value formula
We have learned about the three key value drivers of online publishing in a previous blogpost. Based on these insights, it's pretty easy to derive a general formula of media value generation.
The interesting thing about such a formula is that it allows us to predict the power and value potential of any given online publishing system by measuring it's performance on the different dimensions of the formula. It doesn't tell you what you have to do in terms of content design to maximize its value, so this is not necessarily a useful tool for the content creation process. See it as a bird's perspective on the Web 3.0, its technologies and value logics. A formula that allows us to calculate the performance and economic power of any
publishing platform, and the web in general.
So if we take the three value drivers
and multiply them with each other, we get to the hourly wage of an author:
speed × traffic ×
profitability = hourly wage
We even see that
the units make sense: content / time x traffic / content x money / traffic =
money / time, or dollars per hour.
This formula
reveals the secret behind a higher profitability in user-generated content:
authors need to be able to publish in less time, achieve more traffic, and earn
more money per visitor.
 For a system
architect, that means: develop the technologies that make publishing even
easier and faster; that connect authors more effectively with their target
groups; and allows them to implement the technologies that drive visitor
profitability. That is, of course, easier said than done, but at least now we
have a formula that allows us to compare and benchmark systems and
infrastructures in regard to their value generation potential. The Web 3.0 is
coming closer….
We have learned about the three key value drivers of online publishing in a previous blogpost. Based on these insights, it's pretty easy to derive a general formula of media value generation. The interesting thing about such a formula is that it allows us to predict the power and value potential of any given online publishing system by measuring it's performance on the different dimensions of the formula. It doesn't tell you what you have to do in terms of content design to maximize its value, so this is not necessarily a useful tool for the content creation process. See it as a bird's perspective on the Web 3.0, its technologies and value logics. A formula that allows us to calculate the performance and economic power of any
publishing platform, and the web in general. So if we take the three value drivers
and multiply them with each other, we get to the hourly wage of an author:
speed × traffic ×
profitability... more
4 success factors behind content monetization
Another question bloggers
and online publishers ask me on a regular base is probably as widespread as the
interest in earning money. How can you monetize content in the web? I know there
are thousands of articles written about this topic, but since this is the
official blog of Web 3.0 – user-generated media business, let me give at least
a quick answer.
The monetization
of content is actually nothing less than the monetization of your mindware. You
are an expert with distinct knowledge, or an entertainer with distinct
entertaining skills. That’s the source of value. It’s important to understand
this fact, since my take on monetization is slightly broader than usual. Let’s assume
you are a marketing specialist who has a new system to make brands big in the
web. You can monetize this knowledge on 5 dimensions:
- Sell your content
- Create lots of traffic and sell advertising
- Place products or services of others on your
site to monetize traffic through sales or affiliate programs
- Attract clients on your blog or website and
make them hire you for consulting or training services
- License your content to publishers, educators
etc.
Maybe there are
even more options. It doesn’t matter. Because behind all the obvious, in-your-face tips on how to monetize your content, there are four underlying dimensions that predict your bottom line success:
- You need a strong, distinct expertise that is
of value to people.
- You need to transform this expertise into
published items (videos, blog posts, or even better larger works like a DVD, course
system, book etc.) and publish them constantly.
- You need to market your online destination by
giving people who matter in your field the opportunity to talk about you.
- You need to offer a straightforward portfolio
of products and services that people can purchase.
This is my take
on a strategic blueprint of online content monetization. Of course, for each
point, there are many things to consider, but these overarching principles
provide you with the most powerful profitability framework I found so far.
Once
you get the second four points straight, you can apply all the operative wisdom
you find everywhere in the web and in money-blogging, including the first five
points I listed here.
Another question bloggers
and online publishers ask me on a regular base is probably as widespread as the
interest in earning money. How can you monetize content in the web? I know there
are thousands of articles written about this topic, but since this is the
official blog of Web 3.0 – user-generated media business, let me give at least
a quick answer.
The monetization
of content is actually nothing less than the monetization of your mindware. You
are an expert with distinct knowledge, or an entertainer with distinct
entertaining skills. That’s the source of value. It’s important to understand
this fact, since my take on monetization is slightly broader than usual. Let’s assume
you are a marketing specialist who has a new system to make brands big in the
web. You can monetize this knowledge on 5 dimensions:
Sell your content
Create lots of traffic and sell advertising
Place products or... more
What is the market potential of user-generated content?
Maybe you think “that’s
a weird question”. But when we talk about the Web 3.0 and user generated media
business, both startups and Venture Capitalists will ask exactly this question:
what is the real value potential for empowering everyone to earn money from creating
content?
There are many
ways to approach this topic – most prominently, using the current size of the
market or that of neighboring industries like the book market. If the US book market
has a total turnover of, let’s say, $50 billion, we can start making
assumptions about how much of this amount is generated online, and what the
potential of a self-publishing author vs. a professionally published author is.
I think this
approach is wrong.
Because the
content industry, as of today, doesn’t really exist. Content today is created
and processed in a manual, highly inefficient way. Media products are not part
of a larger processing and application system. Knowledge, as the most
significant source of value in the industry, is still in a baby state, not much
higher developed than in ancient Greece 2500 years ago. There are no systematic
problem identification systems and markets, no large scale knowledge unit mass
production, no automated knowledge application, feedback loops and
re-engineering processes. A publishing company today has as much in common with
an advanced knowledge company as Johannes Gutenberg’s printing machine had with
a blogging platform.
To estimate the
true market potential of a future content industry, we first need to define and
understand what content actually IS. Content is actually everything people can publish,
and that other people can absorb into their brains. It is mindware – the stuff that
makes up our minds.
The value of mindware originates from two sources: from the mere
pleasure it creates through logical insight or emotional inspiration, and from
allowing us to create more value in the physical world by providing us with the
mental and behavioral patterns that solve problems.
While the first
source of value is similar to other goods in the sense that it is limited to satisfying
a part of our need portfolio, the second one is special. If content includes
all mindware that helps us to solve problems and basically create all other
kinds of content, it is different from nearly all other goods we know. Because
in this case, it’s market potential is unlimited. Let me explain why:
The idea of a
market potential stands in direct correlation with the idea of value creation. The
market potential of an industry equals its maximum level of value creation and
contribution in the total economic mix of things. For example, the auto-market has
a certain maximum size, because it’s unlikely that people will commit more of
their resources to it than the healthy equilibrium between the other goods they
want.
But when it comes
to content as the tool to generate solutions, things change. Because what
exactly is the amount of money people would possibly spent on solutions? Right,
it’s 100% of their money. Because everything people want are solutions:
solutions for their needs and problems. Now, we have to consider that knowledge
is only part of the solution. The other part will be the physical goods and resources
required to build the solution. But knowledge always is a part of any solution,
and probably the most important part.
If we apply some
simple metrics to the value of knowledge – or conceptual content – in environments
where there already are higher developed content based approaches such as
construction, machinery and others, the fair share of value conceptual development
gets is normally roundabout 10-20% (think about your architect, or engineering blueprints).
If we assume that
the Web 3.0 – a web that effectively unleashes large scale content and
knowledge production for all areas of life – is capable of turning our society
in an advanced knowledge civilization in that literally every challenge and
problem is solved through systematic production and exchange of knowledge, and
that the fair share of value the content behind it gets is the same as in
developed knowledge industries, that would end up being 10%-20% of… everything.
Everything equals the world GDP, which is something around $65 trillion.
Do I seriously believe
that the Web 3.0 has a market potential of $6.5 - $13 trillion? Yes, I do.
Because these are not empty figures – these figures represent the largest civilizational
leap humankind has ever experienced. If everyone starts systematically
producing knowledge, aligning his or her thinking capacities to the market
regulated needs of all others, and get’s rewarded instantly based on the true
value that was delivered, a few trillion dollars are the least spectacular thing
we will witness.
Maybe you think “that’s
a weird question”. But when we talk about the Web 3.0 and user generated media
business, both startups and Venture Capitalists will ask exactly this question:
what is the real value potential for empowering everyone to earn money from creating
content?There are many
ways to approach this topic – most prominently, using the current size of the
market or that of neighboring industries like the book market. If the US book market
has a total turnover of, let’s say, $50 billion, we can start making
assumptions about how much of this amount is generated online, and what the
potential of a self-publishing author vs. a professionally published author is. I think this
approach is wrong. Because the
content industry, as of today, doesn’t really exist. Content today is created
and processed in a manual, highly inefficient way. Media products are not part
of a larger processing and... more
web 3.0, value, user-generated content, Web 3.0
The Web 2.0 dilemma
Consider these
numbers: of the 1.4 billion Internet users in 2008, approximately 250 million
actively publish and share content on platforms like Facebook, YouTube, Flickr,
Wordpress and many others. Of these 250
million, around 30 million people are semi-professional or professional online
authors, meaning they publish at least once a week. All these numbers are
growing at a rate of approximately 20% per year.
And here comes
the surprise: of all these active online publishers, only 250,000 make a living
off publishing. That’s 0.1% of online publishers, and less than 1% of
semi-professionals and professionals. In other words: in the Web 2.0, over 99%
of mind and financial potential remains untapped. Ouch.
We are not
talking about a hypothetical situation in a distant future, in which people
start doing things that they currently aren’t thinking of, i.e. assuming that
all of the 1.4 billion internet users engage in in the production of content.
No, we are talking about the people who are already, right now, investing a lot
of time, effort and skill in online publishing. 30 million bloggers, video and
music producers, visual artists and experts who publish online on an ongoing
basis. Considering these numbers, the Web 2.0 is the world’s largest profit
disaster. Never before in history have so many people engaged in producing
media value and earned so little with it. Following this new perspective on the
Web 2.0, the impressive content explosion we have witnessed can also be
interpreted very differently: user-generated content technologies have brought
down the average wage for content producers from $25+/hour to $0.25/hour.
The Web 2.0 is a
technology that has diminished the return on content production by 99%.The
reasons for the Web 2.0 disastrous profitability lies in the details of how
user-generated content works today. Three factors – complexity of rich media
publishing, obstacles in marketing and traffic generation, and a lack of
monetization efficiency – lead to an extreme level of inefficiency for online
publishers.  The Web 2.0 has
unleashed the greatest growth curve for human content production in history. At
the same time, it has reduced the average hourly wage for creative publishers
by 99%.
This means two
things: first, the Web 2.0 is on to something big. Its technologies and
paradigms have proven to move the masses, and incur change on a grand scale.
Second, its true
potential will remain untapped unless we find a way to create more powerful
incentives for everyone to engage in the production of high value content. Most
likely, these incentives need to be monetary in nature in order to free world’s
creative resources on a larger scale.
As long as the
profit disaster of the Web 2.0 remains unsolved, the true content revolution
cannot happen.
Consider these
numbers: of the 1.4 billion Internet users in 2008, approximately 250 million
actively publish and share content on platforms like Facebook, YouTube, Flickr,
Wordpress and many others. Of these 250
million, around 30 million people are semi-professional or professional online
authors, meaning they publish at least once a week. All these numbers are
growing at a rate of approximately 20% per year. And here comes
the surprise: of all these active online publishers, only 250,000 make a living
off publishing. That’s 0.1% of online publishers, and less than 1% of
semi-professionals and professionals. In other words: in the Web 2.0, over 99%
of mind and financial potential remains untapped. Ouch.
We are not
talking about a hypothetical situation in a distant future, in which people
start doing things that they currently aren’t thinking of, i.e. assuming that
all of the 1.4... more
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