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Charles McCurdy

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Jeff Sweat

Rupe Was Robbed. Tales From The Front Lines of the iPad App Economy

By Tony Uphoff | February 12, 2011 at 7:32 pm | 2 comments

If you were launching a daily newspaper today $30m would not be an outrageous sum of money to be spending. What would be outrageous is that you were launching a daily newsPAPER. Spending $30m to create an iPad newspaper application is ludicrous. With substantial fanfare, Rupert Murdoch recently launched The Daily an iPad and tablet based newspaper. He has also spent a ton of dough, a reported $30m and counting. Heck even with the house ad rates a sister division at News Corp might enjoy, the Super Bowl ads had to run some $5m. Frankly they were kinda weak too….but I digress. Simply put Rupe was robbed. While clearly a true media visionary and uniquely successful businessman, Rupert Murdoch’s approach to the iPad and application based media revolution reflects an old media approach to what is now a new and very different media world.

The Application Economy is being driven by the fusion of information design and mobility. At the risk of alienating my open source and Android pals, the core manifestation of this is the iPad. What is unique about the Application Economy is that from it’s inception it was designed and built on an ongoing service business model. In other words you download or buy an application and part of the value is that the application will be updated on an ongoing basis. In developing applications you need to consider that user engagement and interaction dictate how you evolve and update the application. While perhaps a simple concept, this is still a huge cultural shift for broadcast media companies like News Corp. They are used to the “build it and they will come” methodology, where you pour huge money into a launch, creating a massive barrier to entry and hope to realize a profitable return years down the road. Movies, daily newspapers and television make up the vast majority of revenues and profits of News Corp so this approach has served them well. The application economy operates very differently however and requires the ability to manage an Application as a Service.

Will Rupe realize a return on his investment? Hard to say. I certainly wouldn’t bet against him or News Corp. His first foray with the iPad however would indicate that he doesn’t yet understand the model and still thinks massive investments will create audience value and a competitive barrier to entry. No matter what your point of view the build out of the iPad App Economy will be exciting and fascinating to watch play out.

Search to Social to Schmidt to Page

By Tony Uphoff | January 22, 2011 at 7:06 pm | 3 comments

The shift from Eric Schmidt to Larry Page as CEO of Google is more than simply a change of leadership. It represents the broader shift in the center of gravity of the web from search to social. The surprising announcement in the change at the top of Google this week has created all sorts of conjecture. Google feels the heat from Facebook and needs to reignite the passion and focus. Google has become like Microsoft a large monolithic company that still generates considerable revenues and profits but where vision, innovation and passion have died. The Microsoft comparison is the most interesting one. You could make the argument that Bill Gates stepped down as head of Microsoft as the PC lost it’s power as the center of gravity in computing. The dominant company in computing for the previous decade, Microsoft’s business and culture started to change as the web became the computational platform. No longer the straw that stirred the drink Microsoft saw an entire generation of talent either retire to pursue philanthropic or personal interests, or leave to start their own companies or join new ventures. As with Bill Gates and Microsoft you also have the dynamic of mega-wealth in the change at Google; where a still active, capable CEO in Eric Schmidt may have interest in what he can do for the broader world and how he might use his wealth and position to have a positive impact on society.

Great brands and companies evolve. Google, like Microsoft, will go through market changes and leadership changes and if the core of the company and it’s culture are as strong as we think, it will not only survive it will thrive. In 1997, there was a similar market shift and Steve Jobs came back to Apple as CEO. A friend who worked on Wall Street asked me if I thought Apple Stock was a good buy. I told him I would wait and see. A $1,000.00 investment in Apple stock at that point would be worth $1,000,000 today. It will be fascinating to watch Larry Page take center stage at Google and lead the next phase of the growth for the company. The shift from search to social has clearly created new challenges for Google but as with all transitions will also create new opportunities. One prediction is for certain, the battle for supremacy in technology is only going to get more interesting and the real winners will be the users of the extraordinary new applications and tools that will be the result.

Media, Marketing & Technology In 2010

By Tony Uphoff | January 1, 2011 at 12:46 am | Post a comment

2010 has been an incredible year. It went by in a blink. The year started out with feelings of fear and dread and is ending with feelings of excitement and optimism. 2010 will be remembered as the year the media industry stopped talking about media transformation and started embracing it. As I noted in my presentation at the ABM New York meeting early this year; ” It’s no longer emerging media. It has emerged. You need to shift your world view of digital media as a disruptor to digital media as an enabler”.

I’m not one for lengthy year end reviews or lists so I won’t attempt that here. There are a few highlights from the year in Media, Marketing and Technology worth noting though:

Media. 2010 will be remembered as the year of the social graph and the media application. In 2010 we realized that there is life after search and it feels quite social. The shift from search to social has created a new series of opportunities and challenges for media. Many web sites have bastardized their content in order to game out search engines. This SEO/SEM centric web-publishing model generates drive by traffic that is of very low value and too costly to generate and profitably sustain. The shift to the social web has brought back the power of word of mouth enabling a corollary flight to quality and brand. Content has always been king in media. Distribution however continues to be the power behind the throne. In 2010 we saw the emergence of application-based media as a distribution force to be reckoned with. While the first generation of iPad magazine apps have been just that, first generation, applications by companies like Flipboard, Treesaver and Flud show the power and potential of content applications and the role they will play in media.

Marketing. 2010 will be remembered as the year marketing regained its equilibrium. After a decade of turbulence brought on by the Internet; marketing, like media, realized that digital media is friend not foe. Lead gen myopia has evolved into branded response. We’ve gone from Mad Men to Math Men as marketers started harnessing the power of technology and analytics, combined with content-rich creative and created compelling, engaging, online-marketing. As noted in the post earlier this year: Advertising Isn’t Dead. It’s Becoming Marketing. Again.

Technology. 2010 saw a series of game changing new technologies introduced. None bigger than the iPad. So much has been written about the impact of the iPad that you could argue it’s become over-hyped. Having seen a ton of technology innovations over the last 20 years I can tell you that the iPad has been under-hyped. Significantly. Like the Macintosh and the iPod before it, the iPad has launched a new category and created a vibrant ecosystem. The iPad is the missing link between the web and physical media. And we are only on the first generation.

2011. I’ll leave the predictions to the economists and the futurists. Here are a few things I’ll be watching however that I think will have an impact in 2011 and beyond:

Social Technology. Social platforms have changed the way we connect and communicate with friends and family. They will now change the way we connect and communicate in our work, with our governments and our educational institutions. Facebook may well be remembered as the company that ushered in the social web but the implications of social technology will be felt well beyond even its broad reach.
Mobile. The advances in mobile technology over the last several years have been breathtaking. The user experience of an iPhone or Android today is extraordinary. And getting better. From Skype over an iPhone to applications like Word Lens that converts English words to Spanish via a cell phone camera; smart phones today have made Science Fiction dreams a reality. Stay tuned. Your credit card is next.
Information Design. Let’s be frank. The average web site is not great at showcasing information in ways that engage and inspire audiences. Most sites look like cars at a NASCAR race, with logos, icons, badges and any number of flashing bits of content and advertising. HTML5 is a game changer however and is ushering in a new era in information design that will enable the creation of visually engaging content on the web.

The intersection of Media and Technology is an incredible neighborhood to live and work in and I’m blessed to be a part of this dynamic industry. Regardless of what new innovations we will see in 2011 and beyond, the future is very bright indeed for Media, Marketing and Technology. Here’s wishing you a very happy, healthy and prosperous new year.

Are You Working In An Echo Chamber ?

By Tony Uphoff | December 12, 2010 at 7:56 pm | Post a comment

Seth Godin’s recent post “Everyone and No One” captures the often times confusing reaction to new ideas. Innovation can create an odd polarization. Either Everyone Likes “it” or No One Does . It’s rare that you have a middle ground. Seth’s post made me wonder if this love it or hate it syndrome is most acute in those of us who work in areas of extraordinary creativity, innovation and entrepreneurial spirit, like The Silicon Valley, The Thirty Mile-Zone of Hollywood, Madison Avenue and Wall Street. It’s easy to get caught up in the passion, intensity and sheer optimism that typify these environments and the industries they represent. It’s also possible to develop myopia however and assume that everyone or perhaps no one “gets it”.

It can be difficult to retain a sense of perspective when you spend the majority of your time in areas where discussions tend to reverberate around a small echo chamber of like minded people. This echo chamber mentality can also develop in people and organizations regardless of where they are based. The belief that “Everyone” or “No One” likes a new idea, be it yours or a competitors, can be an easy but dangerous trap to fall into. As an old boss of mine used to say…Righteous is probably somewhere in the middle.

Google’s Eric Schmidt On Goin Mobile, Apple & Personal Privacy

By Tony Uphoff | December 3, 2010 at 1:09 am | Post a comment

If traffic is the metric of popularity, then our Web 2.0 Summit interview with Google CEO Eric Schimdt suggests he is still the most popular guy in the Internet economy. Our discussion with Schmidt, led by John Battelle and Tim O’Reilly, received the most traffic during the livecast and continues to be the most viewed video in the archives from the conference, which you can find at InformationWeek.com.

An interesting contrast to relative youngster and upstart Mark Zuckerberg CEO of Facebook, who’s video interview I posted previously ; “Zuckerberg Grows Up”, the interview with Schmidt struck a far more sober tone, reflecting the unique position that Google now holds. I’ve spent time with Eric through the years and have seen him interviewed many times. He seemed a bit agitated in this interview and was uncharacteristically dismissive at times. It’s clear that the recent press on talent retention and privacy issues has gotten to him. Sitting in the front row watching the interview, Shakespeare’s line “Heavy hangs the head that wears the crown” came to my mind.

John and Tim did a great job getting Eric to share his thoughts on mobile and the implications it has for search, payment and advertising. They also got his take on the application marketplace as well as his thoughts on talent retention at Google. He sets the record straight on the “raise issue” and said that the retention percentage at Google has not varied in the last 7 years. He noted that Google hires 200 people a week. Speaking of astounding stats, he also mentioned that there are over 35 hours of video uploaded to YouTube every minute. Astounding. When asked about Apple Schmidt referred to being a “very proud former board member”.

His comments on privacy and their approach to Google Street View are fascinating and reflect the still challenging nature of Internet privacy. Take a look and feel free to post your comments on how the CEO of Google views the Internet landscape today.

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Hollywood Is Still The TMZ

By Tony Uphoff | November 21, 2010 at 1:09 am | Post a comment

Last week “super-agent” Ari Emanuel spoke at our Web 2.0 Summit. Emanuel, CEO of the talent agency WME created by the merger of William Morris and Endeavour, is considered to be the most powerful deal maker in Hollywood. At times however he sounded more like his fictional namesake Ari Gold from the HBO series Entourage. The interview brought to light that while only 350 miles apart, Hollywood and The Silicon Valley are still two very different worlds.

The discussion quickly fell into a free versus paid content debate and got stuck there. It’s understandable that an agent who makes his living by getting the best deal possible for his clients would take a very strong and negative stance on free access to valuable and expensive content. At the same time this stance drove an equally strident reaction from the Internet industry crowd in the audience who questioned Emanuel’s one-dimensional view of the issue. What ensued was a fascinating sociological study of two very different cultures. The interaction also demonstrated that Hollywood is still living in the TMZ; The Thirty Mile Zone, the slang term coined years ago to reflect the view that Hollywood was ground zero for the global entertainment industry.

The cultural gap between Hollywood and The Silicon Valley is about the understanding of technology and talent. In Hollywood the term “technology” refers to capture, process and storage technology; the tools for filming, editing and storing filmed entertainment. Movie theatre’s and television have controlled the distribution of filmed entertainment since it’s inception. Technology embraced outside of the basic movie theatre and television viewing experience hasn’t historically been a concern for entertainment executives. The VCR and DVD player? Yes, the entertainment industry after years of legal action against manufacturers, came to realize they could make money off the devices. The VCR and DVD player ended up being fed by retail distribution however and didn’t fundamentally change the industry’s view of technology. If anything the boom in “home video” revenues via VCR and DVD players created a false sense of security. 15 years after the launch of the Internet, the entertainment industry is still struggling to understand what to do with the platform. Perhaps they feel that like HD and IMax, their distribution partners will harness the Internet and provide them a new platform to reach audiences.

In the Silicon Valley when you use the term talent, people think of developers or engineers who build branded technology products and applications. Talent has a direct connection to the company that hires them as opposed to being hired to work on a project packaged by an agent. In Hollywood the vast majority of people on a studio lot are there on a creative project. That project will last 18 months on average and in most cases the exact same combination of people will never work together again. The majority of people you see on the campus of the average technology company are employees, working on a product and will stay with the company over a period of years.

Taking questions at the end of his interview, Emanuel said he was spending time each month in the Silicon Valley, perhaps believing that if he visits regularly it will bridge the cultural divide. It’s not enough. Hollywood will ultimately suffer the same fate that the music industry has unless they start truly embracing disruptive technologies. The Thirty Mile Zone is a compelling metaphor that was intended to reflect the talent , creativity and passion inside the 30 square miles around Hollywood. Unless the industry takes a far different look at technology however, the TMZ will be remembered as a walled garden built by insular executives who refused to acknowledge that the world outside was changing.

Marketing as a Service

By Tony Uphoff | November 17, 2010 at 11:36 pm | 1 comment

Marketing is going through the biggest revolution in the last 75 years. The laws of physics; reach and frequency, branding and call to action have been upended and a mashup of lead generation, content, customer analysis, relationship management and social engagement is creating a new era in marketing. Technology is acting as both a disruptive force and an enabling platform in this marketing revolution and we are still in the early stages.

There are 3 foundational trends that are emerging in this new marketing era:

From Mad Men to Math Men: Marketing has become metric based. From Internet impressions to click-trough’s to downloads to engagement marketers are awash in data. At the same time there are new tools for analyzing, adjusting and refining marketing in real time that are blending the art of advertising the with the science of analytics.
Content is Marketing. Marketing is Content: Marketing a complex, expensive and highly differentiated product or service requires telling a compelling and multi-faceted story. The skills required to do this are centered around content. The ability to create a story that engages and sustains audiences are the same skills required for creating a brand or product story that engages and sustains interest from prospects and customers.
Marketing as a Service: Marketing as a one-way broadcast model, done in a series of campaigns simply doesn’t work anymore. Successful marketing today requires a content centric, conversational approach that engages and sustains a community of prospects, customers and vendors around mutual interest and the quality of the content exchange. In other words once a brand has engaged prospects and customers with a compelling story, this “community” needs to be sustained and nurtured. This shifts marketing from a project and campaign orientation to marketing as an ongoing service. The key is to be able to build, sustain and curate these communities and engage them on and off line.

Given the early adopting markets we serve at UBM TechWeb we’ve been actively engaged in these foundational shifts in marketing for several years. And we have the scars to prove it! We have also been doing research on technology professionals use of media and how they engage with marketing that helped us develop our own approach to Marketing as a Service. We post this research as well as interviews with CMO’s of technology companies and case studies of various marketing approaches on our site: Create Your Next Customer. Feel free to log on on, take a look and give us your feedback. And as always, please also drop me a note at Uphoff on Media and let me know your thoughts on Marketing as a Service.

The Social Enterprise

By Tony Uphoff | October 10, 2010 at 9:50 pm | Post a comment

Business is a collaborative sport. Always has been, always will be. Growth in business, whether from new customers, new products, new efficiencies or by acquisition requires collaboration. Business school case studies are founded on examples of successful or unsuccessful collaborations. The challenge is encouraging, coordinating and enabling collaboration is incredibly hard. Through the years technology breakthroughs have driven new levels of business collaboration and the rare profound breakthrough has created a market transition that truly changed the way people and organizations work. We are in the midst of one of these market transitions now. We call it “The Social Enterprise”.

Social media is following the same adoption curve that the Internet did. The Internet gained commercial traction as a consumer platform. As it reached a critical mass in the consumer market, enterprises started to evaluate use of the Internet as a business platform. A series of enterprise adoption phases followed. The Internet was hailed as a revolution and a fad. The Internet was a polarizing platform fueling debate in business, academia, the general media and around the family dinner table. In business ROI metrics were questioned and the platform was deemed both a revolutionary innovation and a massive threat to productivity. Several stages of adoption played out including the “dressing Grandma up in a mini-skirt” phase. You remember that one don’t you? That’s when most every company self consciously put dotcom in their name in an attempt to position the business for the dotcom gold rush. The stock market reminded us that the Internet, like all significant market transitions, could be both over-hyped and under-hyped. By 2003, these awkward adoption phases were over. The Internet had simply become the computational platform for all businesses and enterprise adoption was no longer a debate.

The Social Enterprise: We see the same dynamics playing out with the adoption of social platforms, tools and applications in the enterprise market today. The consumer adoption of social media platforms and services like My Space, Facebook and Twitter reached critical mass. The launch of business social platforms and applications ignited the rapid series of enterprise adoption phases we are seeing today. The market adoption of The Social Enterprise however will happen faster and have a more profound impact on the way we work than the Internet did.

The Human Operating System: Simply put The Social Enterprise is a more natural way to work. Daniel Pink in his new book “Drive” writes about the innate need to solve problems and to collaborate with other human beings to do so. Social platforms enable people to work in ways that are more in line with the way they naturally interact and work. The self-publishing, crowd-sourcing, communications centric approach that The Social Enterprise provides, serves as a foundation for the ultimate collaborative platform, the human operating system. The power base in business today comes not from what you know, but rather from what you share. The Social Enterprise brings together the collective intelligence of the organization. It also creates a connected expert marketplace across businesses regardless of geography, time zone, or organizational structure, driving peer to peer exchanges based on knowledge and value.

Implications for Technology, Media and Marketing: The Social Enterprise will have a significant and lasting impact on technology, media and marketing. We are already seeing new social platform companies like Jive Software and SocialText gain adoption in the enterprise market. We are also seeing major enterprise software companies like Microsoft, SAP, Oracle and Salesforce.com add social features and functionality. The Social Enterprise will reshape the technology landscape and become the center of gravity for the way companies think about and position the products and services they produce. The Social Enterprise is also having a profound impact on how media is produced and how audiences interact with media. Social applications and tools have become new distribution networks as people become far more interested in trusted brands and what people in their social networks are reading, doing and thinking, than they are in “searching” the web. We will also see new opportunities for marketers as new platforms, tools and applications allow for conversational and contextual marketing to take place across media platforms and environments.

At UBM TechWeb we are helping people and organizations harness the power of The Social Enterprise. Our Enterprise 2.0 Conference is the leading destination for enterprise buyers looking for collaborative technology solutions. We also produce ongoing research on the enterprise adoption of social applications and tools and share this research with technology marketers via our Create Your Next Customer site. In the spirit of sharing what you know, please feel free to add your thoughts and experiences on The Social Enterprise.