Tag: Internet

‘Marketing in Virtual Communities’: A Retrospective

On By quriosityIn Business and Marketing, Communication, Innovation, Internet, Society and Popular Culture, TechnologyLeave a comment

In 1997, I wrote an article for Internet Marketing & Technology Report titled “Marketing in Virtual Communities.” The IMTR newsletter, now out of print, was published by the research firm Computer Economics, where I assisted as a contributing editor during the late 1990s. Frank Scavo, president of Computer Economics, has kindly given me permission to re-post the text of my article, which appears below (I’ve added some images showing screen shots of online communities from 1997).

The WELL home page, 1997
The WELL, 1997. Source: Internet Archive

The article came to mind when a colleague on Facebook posted a link to another 1997 article, “The Epic Saga of The WELL,” published in Wired. While not the first online community, The WELL (Whole Earth ‘Lectronic Link, started in 1985) exemplified to many 1990s Internet users the potential of electronic networks to become true communities in online space.

Interesting as it was, The WELL did not represent what I was trying to write about, that is, the use of virtual communities as marketing media. Believe it or not, this was an uncertain and even controversial idea in 1997. At that time, there was still a significant contingent of users who regarded Internet marketing as a blasphemous idea. Many business people thought it was stupid and a waste of money to take your business online.

I wanted to re-post “Marketing in Virtual Communities” in part to provide this text with an online presence; in part to show what marketing experts were thinking back in 1997, before Facebook existed and even before the term “social media” entered common usage; in part to show how things turned out both differently and similarly to what we expected; and largely, I think, to show how hard it is to predict future innovations.

In the article, I listed a number of online communities that had been started as commercial efforts created with the goal of marketing to large groups of people associating together because of mutual interests. Some of the sites I named still exist today, but not as virtual communities as defined in the article. However, many social media efforts have gained large audiences and commercial success, somewhat along the lines of what we were thinking in 1997. According to one reckoning, social media ad spending will reach $68 billion in 2018, and Facebook boasts 2.2 billion active users.

And that brings me to what I like to call ‘the folly of futurism.’ When I first saw the NCSA Mosaic World Wide Web browser in 1993, I was astounded. I knew I had witnessed a great innovation, but I had no conception how far things would come in the next 25 years. We can try to predict the future, and more power to us. But we can’t count on being right.

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Marketing in Virtual Communities

by Al Bredenberg

First published by Computer Economics in Internet Marketing & Technology Report, October 1997. Republished with permission.

The idea of “communities on the Internet” might sound quaint in these days of widespread commercialization of the Net. However, an updated view of this concept reveals important opportunities for marketers, advertisers, Web publishers and prospective community organizers.

In his 1993 book, The Virtual Community, visionary Howard Rheingold described online communities mainly as a social phenomenon:

“Think of cyberspace as a social petri dish, the Net as the agar medium, and virtual communities, in all their diversity, as the colonies of microorganisms that grow in petri dishes. Each of the small colonies of microorganisms–the communities on the Net–is a social experiment that nobody planned but that is happening nevertheless.”

While communities like this do exist today, four years later, many intentional communities have come into being, built by companies, organizations and individuals with commercial motivations.

A virtual community can provide compelling benefits for the marketer:

  • The opportunity to engage a loyal audience of members in an online environment where they feel secure, in control and open to commercial solicitation in their areas of interest.
  • Availability of user demographics or intelligent targeting for promotions.
    The ability to develop special promotions tailored to the community’s audience and integrated with content.
  • Reduction in the cost of searching out customers (the community helps vendors and consumers find each other).

Defining virtual communities

Geocities home page, 1997
Geocities, 1997. Source: Internet Archive

In the 1997 book, Net.Gain: Expanding Markets through Virtual Communities, John Hagel III and Arthur G. Armstrong set out an updated vision of online communities from a commercial perspective.

Hagel and Armstrong define a virtual community as an aggregation of people in a computer-mediated environment with these characteristics:

  • A distinctive focus
  • Interactivity, or integration of communication and content
  • Emphasis on member-generated content
  • Involvement of competing vendors
  • Community organizers with a commercial motivation

In marketing today, considerable cost and effort must go into obtaining and maintaining audience information and marketing database. Hagel and Armstrong believe that, in the future, one of the great assets of the virtual community will be its possession of member and commercial transaction profiles.

This vital data, however, will be under the control of the members themselves, who will offer it in exchange for better deals and better service from vendors serving the community. “Members will choose to capture information about themselves so they can maximize the value from that information,” postulates Net.Gain on page 104.

“By shifting power generally from the vendor to the customer,” claim Hagel and Armstrong, “virtual communities will irrevocably alter the way large companies market and sell to customers in their core business. These changes will demand new ways of thinking about and approaching the marketing and sales functions.” (Page 186)

Emerging communities

Do any existing communities now fit the vision outlined in Net.Gain? Perhaps not yet, at least according to the rigorous requirements set out above. However, if the authors are correct, some mature communities will begin to emerge over the next few years with tremendous financial rewards for the members, organizers and marketers involved.

iVillage home page, 1997
iVillage, 1997. Source: Internet Archive

Even now, Web environments are emerging that exhibit some characteristics of virtual communities. Many of these are providing financial returns now. Others promise to do so in the future.

Existing communities offer numerous ways for advertisers and marketers to gain exposure. Nearly all have banner advertising programs. Many allow sponsorship of specific content or communication areas, provide special commercial areas (perhaps with online storefronts or mini-sites), or can develop specialized campaigns within the community.

Several online communities have managed to amass large memberships by providing a general-consumer environment for online interaction.

GeoCities [ http://www.geocities.com ] is a large, many-faceted site boasting 900,000 members. The site is divided into 38 “neighborhoods,” or interest areas with live chats, busy message forums, and free personal Web pages and e-mail.

The Globe [ http://www.theglobe.com/public.qry ], with 600,000 members, runs a number of popular “chat zones,” a matchmaking service, discussion forums, games and quizzes, and even a “Letters to Lola” advice column.

In a similar vein, The Park [ http://www.the-park.com ] emphasizes live chat, positioning itself as a “global communication system and online meeting grounds.” The Park’s 500,000 monthly visitors can participate in 115 chat areas, post personal ads, use a Human Matching System to find other members of like interests, exchange e-mail, and engage in online games and discussion boards. The Park’s founder, Brent N. Hunter, is motivated not only commercially but by his love of Internet technology and its ability to bring people together.

Many virtual communities are organized around specific areas of interest. iVillage [ http://www.ivillage.com ] describes itself as a builder of targeted communities “for grown-ups who want practical answers to real-life questions.” The iVillage channels, AboutWork, Better Health and Medical Network, ParentsPlace.com, Parent Soup, and Vices and Virtues, offer many focused resources, chats and discussion groups, and special question-and-answer areas, such as “Ask Dr. Gayle” in ParentsPlace.com.

Besides offering banner advertising, iVillage creates customized campaigns and special promotions within its communities, as well as bridge sites (mini-sites) branded to the advertiser. Each channel or community includes built-in retail shops targeted to the membership.

iVillage was started by a team of partners from publishing, media and marketing, and is backed by heavy-hitter financing from America Online, Cox Interactive Media and various venture capital companies. This is a group that is banking on a profitable future in the virtual communities business.

Travelocity [ http://www.travelocity.com ], operated by SABRE Interactive, a leading provider of travel reservation services, is almost a Net.Gain textbook case. Directed at travelers, Travelocity provides feature articles, fares, information on destinations, and travel advice and tips. However, it also furnishes busy chat and bulletin board areas, contests and games. Previous chat transcripts and board postings are kept on hand as member-generated content.

Vendor participation is quite active on Travelocity as well. Besides the expected banner ads, the site provides a travel agency directory and a travel mall with complete storefront and e-commerce capability for vendors. Also available: extensive coverage of destinations, complete with listings for lodging, dining, attractions, tours, shopping, events and more.

Evidently SABRE, as community organizer, hopes to position itself as the provider of travel bookings on the Internet, as well as to profit from electronic transactions handled via its e-commerce system.

Communities can be organized around geography as well. Total New York [ http://www.totalny.com ] is a funny, hip, offbeat site devoted to New York City. Members can enjoy news, features, interactive games, live chat events, bulletin boards and more. Total New York is produced by Digital City Studio, owned primarily by America Online and Tribune Co., more players obviously betting on the digital future.

Virtual Jerusalem [ http://www.virtual.co.il ], another geography-defined community, claims to be the largest site in the world for Jewish and Israel-related material. “The Jewish World from the Heart of Israel” offers news from Israel, religious content on Judaism, and features on business, culture, travel and tourism, and the arts. Members (25,000 registered) can interact via e-mail discussion lists and live chat and can send in questions to “Ask the Rabbi.” Virtual Jerusalem emphasizes its promotional capabilities: banner and sidebar advertising, Web presence on the site, a custom storefront in the online shopping area, opportunities to become a content provider and more.

Vietspace home page, 1997
Vietspace, 1997. Source: Internet Archive

Demographics can be the basis for communities as well. SeniorNet’s [ http://www.seniornet.com ] purpose is “to build a community of computer-using seniors.” Advertisers can sponsor special content areas; for example, the site includes the MetLife Solutions Forum and the Kaiser Permanente Health Discussion. Also demographically based, Vietspace [ kicon.com ] is a beautifully designed site directed to the Vietnamese audience.

Professional and business audiences form the basis of many virtual communities. Inc. magazine is building its brand on the Web with Inc. Online [ http://www.inc.com ]. The site offers a great deal of useful content, including interactive areas such as bulletin boards, chat areas and a “Virtual Consultant” section. Advertisers can sponsor special mini-sites on such topics as Finance and International Business.

Physicians’ Online Network [ http://www.po.com ] furnishes a compelling interactive environment for its 100,000 physician members, with a great deal of highly-focused, members-only content and many discussion areas. Advertisers can purchase banner advertising and can sponsor discussion groups and online events. Extensive demographics and targeting are available. POL can work with a medical marketer to develop a special “Disease Management Center,” positioning the company as a leader in a key disease or therapeutic area.

Environmental and Municipal Online [ http://www.environmentonline.com ] has built several well-designed virtual communities centered around water, pollution, public works and solid waste. These communities are designed to create an online marketplace by bringing together buyers and sellers for the various targeted vertical industries.

Virtual communities promise increasing returns

These are only a few of the emerging virtual communities now in formation. No doubt many more will arise as time goes on.

Hagel and Armstrong, the Net.Gain authors, predict that virtual communities will be the next increasing-returns business model. Successful virtual communities will enrich their organizers in the manner of Microsoft and Federal Express.

However, as in the case of Microsoft and FedEx, it will take some time to reach that point of phenomenal profits. Virtual communities must first reach critical mass in numbers of members, advertisers, vendors, and member usage profiles, as well as in volume of commercial transactions.

For some marketers, Web publishers and community organizers, virtual communities may promise profitability right now. For others, it will be more important to invest now and look for benefits in the long term.

In any case, Hagel and Armstrong claim that now is the time to get involved. The eventual winners will be the companies who enter the virtual communities business early. As they say, quoting a Silicon Valley maxim on page 7 of Net.Gain:

“Speed is God, and time is the devil.”

Al Bredenberg is a writer and marketing consultant. He is principal of COPYWRITER.COM (www.copywriter.com), providing Internet marketing, Web content and creative services.

 

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Infographic Maps Physicians’ Use of Online Communities

On By quriosityIn Business and Marketing, Creativity, Health Care and Public Health, Infographics, InternetLeave a comment

Here’s an interesting infographic from Publicis Healthware International, a healthcare-focused communication firm based in Italy. I think this is interesting and potentially useful for marketers of pharmaceuticals, medical devices, and products and services directed at physicians — it gives some idea of how physicians are using social/professional media and identifies some of the trusted communities where they might be reached.

In an accompanying article, Publicis writes that

The proliferation of small and large communities is the result of physicians’ increasing need to share ideas and discuss clinical cases with colleagues in every part of the world.

The article categorizes physicians’ online social media (although “social” doesn’t necessarily express the purpose of these communities) in three ways:

  1. Specialty — focused on physician specialties and special interests — Publicis calls this “the long tail of physician communities”
  2. Location — country- or language-specific communities
  3. Trusted provider — communities that enjoy high confidence among physicians, such as those organized by professional societies
Following is the map/infographic. This image is reduced — you can click on it to link through to the full-sized original:

World map showing physicians' use of online communities

AB — 7 September 2011

How the Internet Reinforces Confirmation Bias

On By quriosityIn Creativity, Human-Computer Interaction, Internet, ThinkingLeave a comment

Recently I wrote about confirmation bias in connection with the climate change controversy — see my article at ThomasNet, “All This Wrangling Over Climate Change – What’s Up With That?” The Skeptic’s Dictionary refers to confirmation bias as “a type of selective thinking whereby one tends to notice and to look for what confirms one’s beliefs, and to ignore, not look for, or undervalue the relevance of what contradicts one’s beliefs.”

Today I ran across an interesting TED Talk (TED hosts and posts video talks on innovative topics) by political activist Eli Pariser who has some interesting things to say about how the algorithms used on web sites such as Facebook and Google tend to reinforce our current thinking and filter out new ideas — see his talk, “Beware Online ‘Filter Bubbles‘” — well worth watching, only nine minutes.

Pariser explains what he means by a filter bubble:

Your filter bubble is kind of your own personal, unique universe of information that you live in online … the thing is, you don’t decide what gets in, and more importantly, you don’t actually see what gets edited out.

If you and I both search for the same thing at the same time on Google, for example, we get different results. The danger of the filter bubble, says Pariser, is that

this moves us very quickly toward a world in which the Internet is showing us what it thinks we want to see, but not necessarily what we need to see.

He suggests that a personalization algorithm deciding what to show us needs to look not just at what it thinks is “relevant,” but at other factors too, such as those in this slide from his presentation:

This seems like a great insight. Anyway, I highly recommend this short video to get you thinking outside the box:

AB — 24 August 2011

Cisco’s Infographic About the Internet of Things

On By quriosityIn art, Creativity, Infographics, Innovation, Internet, TechnologyLeave a comment

On the Cisco blog on July 15, 2011, Dave Evans, Cisco’s Chief Futurist in their Innovations Practice, posted the following infographic about the Internet of Things, which I’ve been writing about for a few years — see “Developing the Internet of Things and a Smarter Planet” and “Is an ‘Energy Internet’ Emerging?,” which touches on similar idea.

Click on this image to link through to the full-size original:

Infographic about the Internet of Things

I’m as much interested in the infographic as a method for the visual presentation of information as I am about the particular content of any infographic — in examining any of these presentations, I think it’s important to understand the data sources and to recognize that these graphics are simplifications of research that is often quite complicated.

I notice that author of this graphic says that by the end of 2011, “20 typical households will generate more Internet traffic than the entire Internet in 2008.” While the denizens of Casa Bredenberg no doubt generate a lot of traffic as Internet users, I doubt whether the objects in our house are right now generating 5 percent as much traffic as the 2008 Internet. Maybe if Progress Energy eventually gets its smart-grid rollout going …

AB — 18 July 2011

Are Speculative Bubbles Ever a Good Thing?

On By quriosityIn Business and Marketing, Creativity, Economics, Innovation, TechnologyLeave a comment

Over at Bubbleconomics, I wrote recently about the effect of speculative bubbles on innovation — see “Speculative Bubbles: Good for Innovation?”

For a long time, I’ve thought that the so-called “Internet Bubble” from the 1990s was actually a good thing in many ways in that it sparked technology and business-model innovation and trained a generation in a new way of thinking about business and communication. Networking pioneer Bob Metcalfe agrees with me, as he says in a 2011 presentation:

We saw from the many Internet Era bubbles that investment, speculation, inflation, competition, and collapse are tools of innovators against the status quo. Bubbles accelerate technological innovation.

AB — 6 June 2011

The Coming Energy Internet

On By quriosityIn Business and Marketing, Innovation, Technology, ThinkingLeave a comment

Over at ThomasNet Green & Clean, I’ve posted “Is an ‘Energy Internet’ Emerging?” I’ve included some insights from networking pioneer Bob Metcalfe, also Thomas L. Friedman and Jeremy Rifkin, as well as my own thinking about the increasingly networked energy grid.

In an email conversation, Metcalfe acknowledged to me that “energy can be viewed as a thermodynamics problem or a government policy problem,” but he thinks that ultimately  “it’s best instead to view energy as a networking problem.”

In a presentation, he gives a bit of history:

“While building Internet 1.0, the Arpanet,” during the 1970s, Metcalfe says in his presentation, “I remember this clearly, we did not say that our goal was YouTube.” And yet, “video is most of what the Internet now carries.”

So, he asks,

What will be energy’s YouTubes?

AB — 5 June 2011

George Douvris Video Interviews About Terence McKenna

On By quriosityIn Creativity, Life, Society and Popular CultureLeave a comment

I just wanted to preserve and share links to a series of video interviews with my high school friend George Douvris, publisher of Links by George. As I understand it, these interviews were conducted in Hawaii recently. George is discussing his experiences with Terence McKenna.

First segment (scroll to the bottom for this video): http://www.kickstarter.com/projects/1862402066/the-brotherhood-of-the-screaming-abyss/posts/78893

Second segment: http://www.kickstarter.com/projects/1862402066/the-brotherhood-of-the-screaming-abyss/posts/78918

Third segment: http://www.kickstarter.com/projects/1862402066/the-brotherhood-of-the-screaming-abyss/posts/78919

AB — 23 May 2011

SEO Angst: The Secret of Search Engine Optimization

On By quriosityIn Business and Marketing, Human-Computer InteractionLeave a comment

Many who manage web sites invest great effort and expense in search engine optimization (SEO), the practice of optimizing the content and format of a site and its pages so as to attract the most search engine traffic.

SEO is important to online businesses, because qualified web traffic can translate into eyeballs (if a site sells advertising) or sales (if it’s an e-commerce site) or potential clients (if the site is run by, say, a consulting firm).

I’ve been around the practice of SEO for about 15 years (before it was even called SEO), and I’ve come to believe in a central truth about it:

If you want search engine traffic, the first thing you have to do is deserve it.

This means providing honest, substantive content.

This also means offering well-executed services and a customer experience that serves the visitor well.

This concept is approximately equivalent to customer-centeredness in marketing or user-centered design in software development. A business has to make a profit, try to grow, strive for market share — but business success in the long term is hard to come by without a strong customer focus, or user focus in the case of web traffic.

By all means, optimize your site for search engine traffic, but be aware that few businesses make it for very long by tricking Google.

Do what you can to direct web traffic to your site, but make sure you deserve it.

AB — 5 May 2011