The question and answer posed near the end of the last post was one about delivering Choice.
Q: In an era of Choice (related to content consumption) and changing social mood, how do you increase the value proposition for your customers?
A: The critical path to this end will involve both single servings and better use-metrics that must conform to Choice. These two together will achieve competitive advantage.
Better use metrics that conform to Choice. It is possible. In fact, if it is done well, I believe census quality use data of content may be part of our future.
Media, as a business, is having a hard time with the Choice trend because markets for content consumption were allowed to develop with significantly different supply potential and that distorted the nature of supply and demand for a long time. This happened over many decades and the obvious fact of this distortion was lost to most competitors. No wrong was committed. But as soon as digital technology began developing, this old distortion was naturally highlighted and is being corrected.
If you tend to hold the view that deflationary forces are shaping media you are right. The main problem with that view is how it tends to hold your perspective hostage to the market structure of old. I say, break out.
Almost as soon as I began getting outside of this perspective was when I first saw how market forces are shoving media businesses in one general direction. The best way to see right now, is to see market forces in relation to the answer to the question above.
To most consumers using the internet, privacy concerns are only minor or maybe moderate (controllable) concerns now even if the noise around this issue has increased notably in the past year. These concerns seem to have grown because others told them to be concerned. The main reason why this is being noticed is connected to behavioral tracking technology that happens without anyone noticing. Suddenly, your computer knows you and anticipates your every interest and need. The number of companies competing in this area is almost shocking but it really should not be to anyone. It is a valuable service that could potentially be used in negative ways. The industry exists for the same reason the digital universe came about...because we can.
Since most consumer data is automatically anonymized, these practices are a benefit to everyone using them, especially the media businesses selling advertising in the digital environment.
It comes down to this piece of hierarchical truth. Choice is the dominant trend in media businesses. It must be faced because it is not going away. On top of Choice is another, higher order, trend: Social Mood. I blog about this subject on my other site, and it is what got me to begin this blog two years and 100 posts ago. Social mood is the primary social trend. It shapes and influences social trending issues over time. Social mood will impact the Choice trend by encouraging consumers of content to take even more control over their experiences. When this begins in earnest, the winners will not fight the Choice trend.
When you Google "anonymized data" you can get into some pretty sophisticated discussions. The issues around this subject need to be made conversational . The idea of anonymization needs to work for consumers and not be allowed to pose a threat. Now, before the industry comes charging this way defending themselves, my point here is how perceptions change over time as part of a pattern and how self regulation one day is often replaced by overt regulation in another period. This does not have to happen even though it feels inevitable, now, as a trend watcher. The industry can choose to step up now and conform to Choice. What does that mean?
It means this, and only this: If behavioral tracking is such a benefit to consumers in the digital environment, then build a company that serves consumers, and consumers directly and spare me the arguments about how it does right now. If this is done earnestly, the ultimate product that results may just be the best source of behavioral data ever and sanctioned by consumers at the same time. It may also rescue part of the media business that are struggling now.
Social trends often take us where we need to go directly if we let true market forces dominate. The Choice trend will throw off many good ideas and services to consumers along the way if we only stop fighting it and make it part of today. The real partnership needs to be made with the very people you are measuring. It needs to be transparent as well as having information flow in both directions.