Tag Archives: earned

Some Thoughts on SocialFlow, Our Latest Partnership

It was announced yesterday that SocialFlow raised $10MM in Series B funding and our kbs+ Ventures participated along with Fairhaven Capital (lead), Softbank, RRE, AOL Ventures, Betaworks, and Rand Capital.  We blogged about our perspective on why we participated on our corporate blog but I wanted to add a few notes here.

I have been tracking SocialFlow ever since I was introduced to Frank Speiser at an event at Nihal Mehta‘s apartment in January 2010.  After learning about what he was building and why, I quickly saw the opportunity to leverage the technology for marketers.  Later that year, Frank give a talk at The Media Kitchen‘s Digital Media Venture Capital Conference and I’ve stayed in touch since.

When we found out that SocialFlow was raising money and was looking for a strategic or two to participate, it was a no brainer for us because of the trends that we are seeing in the space.  I will explain those below.

1.  Evolution of Communications Architecture:  Way back when, the communications architecture generally consisted of Public Relations, Investor Relations and Paid Media.  While those three still exist today and are still going strong, we’ve now re-arranged the construct to be Paid/Owned/Earned media.  What you [as a brand] do and say in paid media can be made exponentially greater when you leverage owned and earned.

2.  Communications Velocity:  The speed in which communications hits the marketplace has increased rapidly.  I don’t know of a “law” such as what we have with transistors (Moore’s Law), but I have to imagine that the speed in which we communicate has increased so significantly that old media cannot keep up.  Within 15 seconds, I can put out 140 characters to my entire follower-base on Twitter, Facebook, Pinterest, Instagram, Vine, or whatever other communications tool.  When it was just print ads, television ads, or even radio, it took months… sometimes a year (inclusive of production)!

3.  Big Big Data:  Almost every digital platform we use exhausts some form of data trail.  This data trail can be collected, mined, and optimized into an opportunity or insight for a marketer (or any company for that matter).  With the explosion of digital communications, there is a ton of data that’s available to optimize from.  Making sense of this data thru frameworks, architectures, and algorithms, will allow marketers a leg up in the communication “wars” for customers.  Note: It’s not about the size of the data set, it’s about the insight that’s gleaned.

4.  The Shift of Dollars:  We have all seen the charts that show time spent with a media channel vs. advertising dollars and the gap that exists in digital is still large.  But it’s getting smaller, which means that ad dollars continue to flow into the digital landscape.

SocialFlow capitalizes on the four points above.  They are smack in the middle of all of this.  Many of the kbs+ Ventures portfolio companies also exhibit these traits (and others).

With our relationship with Frank, the evolved management team, and the market traction the company has, we were super excited to green light this investment.

 

 

Stuck In A Rut of Incremental Innovation

I have been in the digital media marketing ecosystem since its inception.  The first documented digital advertising was born as banners and buttons (1996) that lived on webpages.

Ad servers were built to deliver these banners.  Incrementally better ad servers were built to better serve these banners, video, and buttons.

Sites federated together to create ad networks.  Incrementally better ad networks were built around technologies such as contextual, behavioral, semantic, etc.

Boxes on websites were created to house advertisers’ creative.  These lead to banners.  Incrementally better banners were created that yielded rich media units.

Search engine marketing solutions were built to manage and optimize voluminous keyword lists.  Incrementally better SEM platforms now include Facebook buying

Lots of incremental-ism.  Being incrementally better sounds like a rat race.  Or the cold war.  I’m better today.  You’re better tomorrow.  Its a no-win game and becomes all about marketing and salesmanship where it should be about the product and performance.

So where is the 0-1 going to happen in this industry?

Maybe we focus so much on going from 1 to n because that’s easier to do. There’s little doubt that going from 0 to 1 is qualitatively different, and almost always harder, than copying something n times. And even trying to achieve vertical, 0 to 1 progress presents the challenge of exceptionalism; any founder or inventor doing something new must wonder: am I sane? Or am I crazy? (Blake Masters class notes of Peter Thiel CS183)

Its happening.   But it’s not overly obvious to all.

The social marketing space inclusive of content creation is unbelievably sloppy and inefficient right now, but I propose we will see tomorrows DoubleClick-like, Advertising.com-like and Google-like come out of the social landscape.

Why?  Because it’s fundamentally different.

There are no banners or buttons.  The way we’ve acted in the past is not the way we act in the future of this space.

Communication does not scale.  We need to re-think the way we communicate and participate in this space.  The role for earned and owned media becomes just as important as paid media.

The 0-1 innovation is going to come from the social places in ways we cannot imagine today (or some people already are).

 

* Note, I’m not down on paid media buying.  I’m all for it.  I work in it. It’s evolving quickly and there are some fantastic companies participating in the space.  But when looking out across the marketplace, and looking for disruption, this (s0cial) area is ripe.

 

 

 

 

Paid, Owned, Earned (Media)

I’ve been on a recent kick looking for “media” opportunities that cross the paid, owned, and earned landscape.  I’ve been looking for them for some of our clients media plans but I’ve also been looking at them from an investment perspective thru kbs+p Ventures.

The Paid, Owned, Earned Media framework isn’t new and a quick Google search reveals that it started catching on in 2009.

For those unfamiliar with the team, it’s a media construct/framework where a tactic (or overall strategy) crosses between paid media (media you purchase), owned media (media you own such as a website, video) and earned media (Re-tweets, shares, etc).

I’m on the lookout for companies who cross into this category.  An example of one that I was a lead mentor for in the TechStars NY program is CrowdTwist, as it’s a social loyalty platform that plays into the POEM framework.

Would love to hear about any other POEM partners out there as I think this area is really interesting.