Analyst:
China's women represent untapped market
Companies that might normally focus on their core markets during a recession
should look for growth in buoyant, developing markets like India and China, says
Shaun Rein, founder and managing director of China Market Research Group. One
rising group they should be careful not to overlook is the women of China, Rein
says, noting that females now contribute about half of household income, up from
20 percent in the 1950s. -
2009
August 5 Forbes
Clashing Media Models
A report by IBM describes an imminent and inevitable clash between those who traditionally produce content and those who traditionally distribute it.
This nifty - if difficult to understand - graphic summarizes their prediction for the conflicting media models:
Their assertion that the Internet allows content providers to bypass paying distributors surprised me less than the idea that distributors will try to wall off their communities and offer rich niche experiences.
Surprisingly, the report asserts that the walled-off media model includes user-generated content, citing Comcast’s work with Current TV (Al Gore’s version of YouTube), Verizon’s work with YouTube and NTT DoCoMo’s thousands of user-run content sites. >> more
Web visionary John Battelle aims to act as middleman to Mad Ave.
Over the past decade, John
Battelle has shown a flair for creating innovative media properties. In the
1990s, he helped found Wired magazine. During the dot-com boom, he
launched The Industry Standard. And in late 2005, he published a book
on Internet search technology just as Google Inc. blasted into the
stratosphere.
Now, Battelle is at the forefront of a movement attempting
to answer one of the Web's most vexing questions: How do you turn blogging into
a day job? Millions of people publish blogs and other niche Web sites, but they
struggle to make a living from their passion.
Battelle thinks his new
company, Federated Media Publishing Inc., can be part of the solution. The
Sausalito (Calif.) startup is signing up hundreds of the best sites and selling
their ad space to brand-name advertisers such as IBM, Absolut, and
Hewlett-Packard.
Federated Media doesn't own the blogs, as do other blogging networks such as
Gawker.com, but it keeps 40% of the ad revenue and gives the rest to the site's
owner. "It's kind of like a music label, except we don't control their
intellectual property and tell them what to sing," says
Battelle.
Federated Media represents just a drop in the advertising
ocean. But the venture is off to a promising start. Last year, it sold more than
$10 million in advertising for about 90 Web sites. This year, Battelle says it
is on track to turn a profit and increase sales fivefold.
On Feb. 5,
Federated got a boost by announcing it had signed as advertisers Cisco Systems, Nissan, and Nike, and 20 new sites, including
video blog Rocketboom. It also re-signed Boing Boing, Digg.com, and a few other
larger sites to long-term contracts. "It's a very compelling idea," says Daina
Middleton, director of interactive marketing for Hewlett-Packard's imaging and
printing group, which is working on an online campaign aimed at graphic artists.
"You are able to enter a community of bloggers in a unique
way."
Battelle's biggest challenge may be managing growth. Last year some
sites grumbled that too much of their ad inventory went unsold as Federated
Media focused on signing new properties. Jason Calacanis, the former owner of
Web Logs Inc., a blogging network bought by AOL in 2005, says the big
limitation is that Federated Media doesn't own the sites: "The second you build
your client's business past $500,000 a year, they hire their own sales
force."
Battelle believes the relationships he is building with
advertisers will help it clear that hurdle. "Boing Boing is never going to get
into the offices of General Motors ," he says. "But Federated
Media does all the time." - 12 Feb
2007 BUSINESS
WEEK by Spencer E. Ante
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