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- Black Media, Instead of Mimicking Blogs Why not just Acquire?
I don't think traditional black media appreciates new black media enough to invest...Therefore it is black new media's job to get organized and make an EFFECTIVE pitch to old black media. It's time to make the case...i hate seeing black traditional media destroy the legacy that they created.
I still believe a new redesign would really help the publication in more ways than one. I am sure those that are often mentioned on this site would be more than happy to help you and your team out, if you let them.
Again best to you.
Negotiations aren't that different from negotiations with any small business owner. There is a sense of not wanting to get taken advantage of and that typically surfaces from a lack of understanding or knowledge. To Bloggers credit (and I am one) many people treat bloggers like they don't know the basics of business. I can speak to that personally because I have been in these positions first hand repping BW2.0. I've also been in these positions while working in corporate America so I do understand the thought process.
I was actually thinking of doing another post on why I think bloggers should operate more as businesses. Far too many bloggers don't operate as businesses when they should. This includes when negotiations on a deal sour or aren't to your liking politely passing on them.
In terms of the quality of blogs that exist I don't think that really matters to most. To be honest I think what matters to large media companies is traffic. I don't necessarily agree with this, which leads me to your next point, what would they be buying if not traffic? They would be buying community and they would be buying authenticity. essentially they would be buying another brand.
Why would a blogger want to sell? I'm not saying they would need to sell or should really even want to. What I am saying is that should be an option whereas right now it really isn't. Like any company the decision to sell or take an investment would be that of the owner and the owners vision, goals, and strategy for the business. Why a particular blog would sell or take an investment can come in all different shapes, sizes, and colors.
Most high quality blogs (which BTW Clutch doesn't consider themselves a blog) have some sort of goal to be bigger than themselves and/or influence some level of creative destruction which is why they put so much time, effort, and resources into what they do. Naturally to achieve those goals and to achieve them in a timely fashion before someone else can (speed to market) you need money or resources.
It's not just about acquisition, it's about strategic investments, it's about joint ventures, it's about that type of activity that doesn't exist.
What makes you say there is no market? Is it because there are no bloggers willing to sell? I know plenty.
Glad this discussion is so lively :)
I say that there is no market, because as you noted that type of activity doesn't exist. I don't see many bloggers making strategic investments and partnerships with each other. I mostly see that crab in the barrel attitude. If I was a traditional media company looking to make a move, based on the environment I see, I would overlook an acquisition. Why buy when I can pounce with my resources? (Are we sure they didn't bring a blogger or one of the many trusty social media experts in house to oversee the mimic?)
Quality is not the most important, but I mentioned it because it adds value.
Clutch not considering themselves a blog is a great strategic decision. When it comes to content and its delivery they are doing what both bloggers and the bigger publishers should be doing. I can only hope they are developing the business side of it with the same approach.
When you write the post about bloggers (who are looking to sell) should operate more like business, please note that they should not be so hard to deal with directly. Especially when their inventory is available for pennies at the networks.
Very true statement, I agree this needs to change as well.
"When you write the post about bloggers (who are looking to sell) should operate more like business, please note that they should not be so hard to deal with directly. Especially when their inventory is available for pennies at the networks."
I agree with this also. Great points!
Media and magazine are such a powerful tool, a wonderful gift, the opener of doors, a means of escape and tools of discovery. Someday soon, a group will emerge that gets it right.
Whether general market or targeted niche, economics and strategy are the general drivers of such decisions to acquire, partner or create. One methodology companies must follow is the basic exercise of a SWOT Analysis to identify whether or not there is a strategic opportunity - one which will positively impact the course of the business - or not and with what resources does an organization have at hand now or in the future. Such an analysis will determine whether or not their is a deficit in the current business that can be filled by going to the outside or turning to the internal organization and at what cost. Businesses often stray from their core competencies and stretch themselves in an attempt to grow. More often than not this approach results in less than desirable results which means they should have looked to external opportunities or ultimately passed on the pursuit altogether.
The better question to ask in the post is do the urban media companies have the talent in leadership and purse-string controlling roles to guide the growth strategies of these organizations, or are they simply trying to learn as they go....?
Your point regarding the leadership to actually execute a decision such as this is a great one. My bet is the people in charge aren't the ones thinking this way nor do they control the purse strings. I don't think anything is wrong with learning as you go but you must hire smart people under you and actually listen to them from time to time. Makes for a much easier learning curve.
From a daily production standpoint, a blog-like functionality (like Gawker's properties) gives you the ability to at least look immediate and handle small-ish stories that don't necessarily warrant more production. With the multi-section sites, if you put up one new article, it requires moving others to get that one in. In a blog strategy, you lose that element of extra work because what's on top is always new.
Further the simpler blog-style template allows you to create verticals (a la Gawker Media) that can be sold to specific ad groups in a way that sections fronts of a larger, more complex site cannot. So for those large media companies, it's not really about being a blog at all, but figuring out how to produce content in a timely fashion on the cheap.
So to answer your question there are two things to do. 1. Yes, acquire blogs, but more importantly, (2) invest substantially in digital so you can have the manpower to be bigger than a blog
So what we are talking about here is more about the presentation? A user doesn't really know what CMS (and I am including Wordpress and Drupal like systems in here along with complicated CMS systems like a Vingette) is powering a property. Just because a site is powered by a Wordpress or Drupal doesn't mean it really needs to look like a blog. Those systems allow for both the immediacy of producing content cheaply but the flexibility in presentation so that the content always looks fresh and can look how you want it to look.
Also I say most are launching blogs well...because they call them blogs, and actually have a blog section. Others really just are blogs, I think Sherri summed it up nicely in her post regarding Essence's redesign when she said something to the effect of "we (the audience) expect more."
On another but related note there is a trend I am noticing on a few sites that visually looks like a mix between a magazine site and a blog.
In regards to your statement:
"(2) invest substantially in digital so you can have the manpower to be bigger than a blog"
...Or so that they can challenge the blog since there are some pulling in a substantial amount of eyeballs. In these cases goes back to my original point why not acquire (with the money saved on manpower) or at a minimum make a strategic investment.
I agree with your point of creating (or acquiring) various blogs as verticals and selling them that way. Makes all the sense in the world and is proven :)
So one problem is smart design because the tools are certainly there to solve the problem without a blog. Another solution is to acquire, but I only caution that what people are willing to do for themselves changes when they are under someone's thumb. Acquisition targets have to be ready for acquisition and all that entails.
Yep! Markus and I were just talking offline about this and what an acquisition might actually "look" like and what that would really mean for the blogger. I think some blogs would be prime candidates for acquisition and some won't.
Do you remember a cat from a black network claiming that we were not Bossip, just because we do not have that sort of traffic. But it is easy to get that celeb traffic, the difficulty is keeping thae quality.
I do not know if you guys have seen ICANHASACHEESBURGHER and how they have used the acquisition to start other blogs similar to it. there is really room for using acquisition to leverage domination.
I
1) There are standards of value and premises of value. By most traditional "standards," the barriers to entry are low and the market size is relatively small. The premises of value mentioned (e.g. authenticity, brand awareness and loyalty) are not necessarily uniquely competitive.
2) Why is a market ever under served? Smart companies never buy blogs. (BTW, I do not think BW 2.0 is just a blog, and I'm sure you don't either.) Instead, smart companies acquire businesses with proven business models and/or an obvious strategic fit. This means that real innovation often requires empirical evidence, time and most importantly, commitment. This is especially true where people are predisposed (or prejudiced) to see no value.
Elbert E. McQuiller
My Black Networks, LLC
www.MyBlackNetworks.com
Because MyBlack is the New Black
P.S. I'm sorry, but not really surprised about Essence.com The recent criticism on BW 2.0 outlined the problem. Poor strategy and execution is absolutely unforgivable in a tough environment.
It's the person (or people), their ideas, and their passion that make a good product good, not just the technology or content alone and certainly not just a solid business plan alone. In my mind, all those are the things are worth paying for.
At the same time, I think most of the black tech startups that have been attempted (*cough*BlockSavvy*cough*) fail because they try so hard to authentically 'black', 'urban' or 'hip'. You know why people use web apps? Because they're useful, not because of the 'swagger' of whoever made them.
Bloggers don't think about any of that..Many of them don't have original content and it's a rip and run process. You're asking two totally different mentalities to come to some agreement, where the dinosaurs pay the hip bloggers to break every rule they've implemented since they entered the business. Not gonna happen. They'd rather create their own "safe" blogs.
Or maybe you want the dinosaurs to make hip bloggers rich and take over their operation. It's a recipe for disastor. And when you add the African-American element, you bring in entrepreneurs who see their magazines as their nest egg or legacy. Who'd jeopardize that for some kooky online experiment they barely understand and can't manipulate?
My question to you is what is your property doing to lift up out of the dead pool. I really think instead of commenting you and the team should be taking some notes for a redesign and editorial direction shift.
And this post if not to be disrespectful, but I feel if you have some of the answers and commentary on others, why is Ebony/Jet in such a terrible situation.
I am also puzzled why you and the Ebony/Jet team are invited to speak at digital/bloggers conferences. When clearly you should be an attendant and not a speaker or panel participant.
A more detailed hypothesis is 'Black'-owned media companies reflect either of two cultures: old school, 'Mom-n-Pop' ownership, or modern corporatism. The former seems complacent with reporting on the social comings and goings of the local Black establishment. The latter is fixated on making short-term profits above all other concerns. Both groups appear stymied by a lack of executive vision and political will within their ranks -- especially when it comes to integrating new technologies, such as Web 2.0.