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March 10 2011

17:00

“Journalists have lost control of the story”: Twitter, tech bubbles, and the nostalgia of the technology press

Editor’s Note: I’m very happy to welcome Tim Carmody — who you may know from Snarkmarket, kottke.org, Wired.com, Twitter, or elsewhere — as a contributor to the Lab. Here he looks at how the increasing speed of media opens us to manipulation — and false nostalgia.

There’s nothing new about speculation bubbles, especially in the technology industry. It’s nearly impossible to be certain which new ideas or products will be able to do what they’re supposed to be able to — let alone whether they’ll be able to do so at cost or scale, if they’ll be adopted by the market, or if a competitor will get there first and better. And when everything’s happening quickly and everything seems exciting, it’s nearly impossible to tell a bubble from a real boom.

The only sure strategy for an investor or inventor is to get in early, push the company as hard as you can to attract attention and investment, and try to sell high, neither too late or too soon. When the economics of money and attention move too far past the economics of the underlying value, you get a bubble. When the money and attention slow, then stop, then rush in the opposite direction, the bubble bursts. The boom is over, if it ever existed at all.

There’s also nothing new about the press’s role in helping to inflate bubbles, worrying over them, and watching them burst. What is new, according to Federated Media’s John Battelle and Thomson Reuters’ Connie Loizos, is how the accelerated news cycle of blogs, Twitter, and other digital media forces the technology press to work at the same speed as the investors they cover — with the same worries about getting in early and beating competitors trumping the real value of the product. In this case, though, the product is their own journalism.

“For several years now,” writes Loizos, “savvy investors have been effectively gaming Twitter and mastering the ability to trumpet their investments in 140-word sound bites.” The credibility (in both senses) of the technology press, when mixed with Twitter’s easy ability to quickly pass on information without comment, gives those trumpet bursts an amplifier. “Journalists have lost control of the story. In rushing to retweet the latest auction results from SharesPost, we’re not thinking about what we’re writing or questioning what we’ve been told.”

Loizos elaborated on her argument in an email. “Thanks to Twitter and, to a lesser extent, other social media like Quora, information about startups and financings has become much more porous,” spreading good and bad information equally quickly, and in volume. “The first story out wins. For example, that first ‘scoop’ is what gets the most real estate by powerful aggregators like Techmeme, while every other story gets scuttled underneath it.” It also changes the relationship between a reporter’s sources and her audience. “[Now] we’re not just competing against one another as journalists but also against savvy investors and entrepreneurs who know they can reach just as broad an audience by delivering their news themselves via Twitter and their blogs.”

Loizos is a veteran of the last tech valuation boom and bust, reporting for the first-generation tech magazine The Industry Standard, founded by Battelle. Battelle’s Federated Media has since gone on to partner with a who’s who of current tech culture and business sites, from Boing Boing and TechCrunch to Business Insider and GigaOm. He sees a problem too, possibly bigger than VCs driving their investments.

The real bubble, or at least the more troubling one, is the “Internet interest bubble.” Here the press is not peripheral but central to the story.

In the new media landscape, “we have migrated to a more free-wheeling discourse driven by any number of interested parties,” Battelle writes. In addition to investors, we see “bankers trying to influence any number of outcomes, and sources within all manners of companies pushing their own agenda on Twitter, Quora, or in private conversations with bloggers and other media outlets…The tweets, conference utterances, and blog posts of these sources are instantly turned into ‘news stories’ by the post-cambrian publishing explosion of sites covering the narrative that was once the province of first-generation Internet magazines” like Battelle’s Standard.

Churnalism, in other words, is a much bigger problem than just press releases and wire stories. It’s everywhere — and creating an echo chamber unprecedented in its size and reach.

“Millions upon millions of people visit these tech news sites, because the narrative they chronicle is more important than it’s ever been,” Battelle writes. “Our industry impacts a huge swatch of society and culture, and increasingly is understood to be the core driver of pretty much all of business today.” And apart from contributing to a tech bubble, Battelle and Loizos think that the echo chamber crowds out better analysis and better stories in our news sources:

But where’s the bigger picture? Where’s the hold-on-a-minute-let’s-think-this-through-and make-a-few-phone-calls-and-see-how-it-develops approach? Where’s the conceptual scoop? The second-day (or even second week) analysis?

“There are stories about healthcare startups that are transforming lives that no one is reading,” Loizos told me. “I think behind-the-scenes profiles of employees who truly make Valley companies valuable are fascinating, but people don’t make time to write them because there’s still this unquenchable thirst for the same stories being written again and again: about the hottest new startup, the hottest new venture capital firm, the hottest new valuation, the hottest new application.” There’s also the comfort of the familiar: “in the tech universe, people could read about Twitter and Facebook” — or Apple and Google, etc. — “all day long and journalists — saddled with driving eyeballs — are giving them what they want.”

“It’s an exciting time, but it’s also pretty screwed up,” she adds.

Both Loizos and Battelle show some nostalgia for the tech coverage produced by magazines like the Standard in the 1990s — partly for the quality of the reporting or at least the relative sanity of print’s slower pace. But Owen Youngman, Knight Professor of Digital Media Strategy at Northwestern University’s Medill School of Journalism, is skeptical that things were any better a decade ago.

“In my memory,” Youngman told Loizos, “a lot of glossy magazines back then were by and for the same people that are running up valuations today, and they could make even the wispiest of ideas seemed substantial.” In an email, he added that “the nostalgia is more about the former number of high-gloss, high-profile, high-paying outlets for tech journalism, not necessarily for the journalism itself.”

In a recent article for The Atlantic, James Fallows voices a similar skepticism about our ability to accurately measure journalism’s present against its past.

“When I recently talked to people in the news business, historians, political scientists, and others about the current predicament of the news, every previous era looks innocent,” Fallows writes. Flux in journalism isn’t the exception, but the rule; and what seem to us like venerable staples like Time, Nightline, or NPR are both younger and were more radical than we typically remember. Ultimately, even that is the wrong question: “While it’s interesting and even useful to know whether today’s journalism marks a descent from past standards, what matters more is how it suits today’s needs.”

At the same time, even VCs themselves are balking at the speed of the market and how social media are disrupting their own practices. AngelList plays a similar role for investors and entrepreneurs that TechMeme plays for journalists and readers, using aggregation, filtering, and social media to manage the flow of information and create new opportunities for both. In “Why I Deleted My AngelList Account,” influential VC Bryce Roberts detailed how this approach conflicted with his own investment strategy and style:

At the earliest stages, it’s nearly impossible to pick the next Google so throw a lot of darts in the dark and hope you hit it. That high velocity, light touch style is certainly a viable approach to investing. It’s just not my style.

I tend towards a more concentrated approach to seed investing where we make fewer, larger, investments and take an active role in working with the companies we fund. Frankly, I just don’t buy the notion that making an investment is akin to throwing a dart in the dark. Worse, I think it’s a dangerous idea to promote…

Real or perceived, organic or manufactured, AngelList is in the business of generating heat. As I’ve said here and elsewhere, I tend to be interested in ideas and companies that most investors aren’t, so heat is generally a false signal for me.

Johnson’s post quickly drew a sharp response from Internet entrepreneur/provocateur Jason Calacanis. “Let’s be honest and just say what’s happening here: you’re pissed that you now have hundreds of angels swarming on deals that you used to be able to snap up at half the price…There are now *hundreds* of qualified and unqualified angels who are driven by sport and not return! They are betting with their own money — not some LP’s” — limited partners who invest in a venture capitalist’s aggregated fund rather than make individual investments — “and [they're] more excited by private companies than 4% muni bonds.”

The language is very different, but it’s not dissimilar to Youngman’s critique of journalistic nostalgia — or for that matter, Nick Denton’s defense of Gawker’s approach to web journalism to Fallows. People want what they want — and what they want is low-opportunity-cost fun. Nobody wants “to eat their vegetables,” to use Denton’s phrase for high-substance, high-prestige investigative journalism. These outlets need the support of institutions or nonprofits, not advertising and eyeballs alone.

It’s clear that both technology companies and technology journalism are on the cusp of something. Whether it’s a bubble or a boom, we can’t know. In the meantime, we have all of the problems of indeterminacy: practices and standards held over from an earlier period jostling against emerging conventions which offer something new.

Blogs and social media offer both entrepreneurs and journalists new modes of engagement with each other and a different kind of conversation with their readers. At the same time, the demands of traditional news formats can actually push us into stories that privilege new forms of manipulation. Reporters seeking a news peg for an analysis-driven story about a popular company can find quotes from blogs, Twitter, or Quora as easily as they can from a company’s press release, putting the same texts and voices into circulation.

Finally, news outlets have to recognize that a big part of their readership is driven by popular speculation, particularly if their coverage focuses on hot startups, big IPOs, and new deals. If a valuation bubble bursts, those eyeballs vanish too. Investing in deep analysis, conceptual scoops, alternative content, experimental storytelling — and the reporters who can produce those stories — is a terrific hedge against that dangerous future.

November 22 2010

15:00

With its new food blog, WordPress gets into the content-curation game

This month, the company associated with one of the world’s most popular blogging platforms took its first, quiet step into the realm of for-profit content aggregation. FoodPress, a human-curated recipe blog, is a collaboration between blogging giant WordPress.com and Federated Media, a company that provides advertising to blogs and also brokers more sophisticated sponsorship deals. Lindt chocolate is already advertising on the site.

“We have a huge pool of really motivated and awesome food bloggers,” explained Joy Victory, WordPress’ editorial czar. (Yes, that is, delightfully, her official title.) Food was a natural starting place for a content vertical.

If the FoodPress model takes off, it could be the beginning of a series of WordPress content verticals covering different topics. WordPress.com currently hosts more than 15.1 million blogs, and when the FoodPress launch was announced, excited WordPress commenters were already asking for additional themed pages on subjects like art, restaurants, and beer.

(To clarify the sometimes confusing nomenclature: WordPress the blogging software — sometimes called WordPress.org — is free, open source, and installed on your own web server; we use it under the hood here at the Lab. WordPress.com is a for-profit venture offering a hosted version of WordPress software, owned by Automattic, which was founded by WordPress developer Matt Mullenweg. FoodPress is a WordPress.com project.)

For now, though, FoodPress’ creators are keeping their focus on their first blog and seeing what kind of traffic and advertising interest it attracts — the start-small-then-scale approach. And one question that remains to be answered in this first experimental effort is how WordPress bloggers will respond to the monetization of their content, and whether featured bloggers will want compensation beyond the additional traffic they’re likely to receive.

So far, the response from users has been overwhelmingly enthusiastic, Victory said. While the familiar issue of blogger compensation has been raised in response to the new venture, “our users don’t seem concerned so far,” she said. Instead, they’re largely excited about the possibility of even more themed sites. Advertising is already a part of WordPress.com, Victory pointed out, popping up on individual WordPress blogs unless a user is signed into WordPress itself.

WordPress’ venture into the editorial realm is significant on its own merits, but it also provides a fascinating case study in how media jobs have proliferated even as the news industry suffers. Victory used to work for metro newspapers, as did Federated Media’s Neil Chase. Now the two are working on a project that brings atomized pieces of user-created content together as a singular web publication. (FoodPress’ tagline: “Serving up the hottest dishes on WordPress.com.”)

Victory is optimistic about this “new way of looking at journalism” — even though, she said, “I consider myself someone who has left traditional journalism behind.” But while some of the FoodPress content is aggregated automatically, Victory believes as well in the value of human curation in creating a good user experience — a sentiment shared among many in the burgeoning ranks of web curators. (Up to now, WordPress’ content curation has focused mainly on Freshly Pressed, a collection of featured blog posts on the site’s homepage, which Victory hand-selects daily.) And to bring more editorial oversight to FoodPress, Federated Media turned to one of its affiliated bloggers, Jane Maynard, to oversee the project — a paid, part-time position.

The blog won’t be just an experiment in curation, though; it will also be a case study in collaboration. “It’s the first step in what we think will be a critical partnership,” Chase noted — one that emerged organically from the collaboration-minded, conversational world of San Francisco-based startups. And just as Federated Media and Automattic have shared the duties of creating the site, he said, they will also share the revenue FoodPress generates.

As for the expectations for that revenue? Victory isn’t releasing traffic stats for FoodPress at this point — both she and Chase were hesitant to talk too much about a project still in beta testing — but noted that the site’s social media presence is growing, with, as of this posting, more than 1,400 Facebook “Likes” and 1,200 Twitter followers. The rest will, like a recipe itself, develop over time. “This is a little bit of an experiment for us,” Victory said. “And we’re hoping it’s wildly successful.”

June 14 2010

15:30

The Awl wants to win on the web with great writing, not SEO tricks

Generally, when you think of a site launch, there’s a pretty standard checklist most people follow. Pick a niche topic that appeals to a big enough audience to merit selling ads. Devise a content strategy, whether its writers or aggregation or both. And, perhaps most important, draw up an audience strategy that factors in SEO, social media, and pageview-driving tricks. (Slideshows!) The Awl, a year-old site about current events and culture in a cheeky-but-not-quite-snarky voice, has taken a slightly different course: Create great content.

The site was founded by two Gawker editorial veterans, Choire Sicha and Alex Balk, and David Cho, who worked on the business side at Radar, where the other two also had a stint. Sicha and Balk produce a stream of about two dozen posts per day (some written by outside contributors, many of them formerly of the Gawker talent stable), and they’ve grown an audience of about 400,000 unique monthly visitors. And in the next few months, they plan to expand by launching two new standalone sites.

I spoke with Cho about his strategy. (I first talked to Sicha, who said “you could kill either one of us [meaning him or Balk] and the site would be fine — but not David.” He warned journalists not to hire one of their own to run the financial side — get a “real” business person.)

Non-strategy as strategy

Cho said the site got off to a rocky start, after early investment money fell through. The trio ultimately launched on their own, embracing the idea of focusing on great writing, and scrapping SEO and pageview-generating maneuvers. The design was, and still is, barebones.

As Sicha put it in an interview with Vanity Fair last year, “I realized that we just don’t really want any stupid people reading it — which sounds mean, but they have plenty of reading material already. I want to disinvite them.” The VF interviewer said The Awl “reminds me of the Gawker of four years or so ago, when it was more targeted to quote-unquote smart people, or Manhattan media people. Before it expanded to cover more of the same old celebrity crap that the rest of the blogs cover and opened the commenter floodgates.”

“I think it’ll be an interesting experiment to see if good content can win,” Cho told me. “I’m much more of the mindset of, ‘Balk and Choire, you should do more stuff like this, because it’s what people want and it’ll get more traffic than this,’ and blah blah blah. And then eventually we do what Choire and Alex want to do, because that’s the way it should be.”

In a sense, the non-strategy is their strategy. The site has a unique aesthetic, creating a strangely cohesive mix of politics, national news, international affairs, and culture stories. (The first written account of “bros icing bros” appeared on The Awl.) [Editor's note: The Internet has informed us that news of the meme predates The Awl's coverage. We regret the error of not being as up to date on the state of bros fieldwork as we should. —Josh] There’s lots of aggregation-plus-comment, but also longer essays by smart writers. The mixture attracts a high-brow, educated, savvy reader and a New York-heavy audience: 25 percent of readers live in New York, with another 10 percent or so in the metro area. Both are potentially attractive audience for advertisers.

A letter from the editor

A good example of the site’s strategy is the recent resurrection of a daily newsletter written by Sicha. “I wanted to keep in touch with those original core, core readers,” Sicha told me, explaining why he decided he needed to recommit to the daily email after a few months off. (The first email back noted it had returned “by popular demand (AKA the demand of our publisher).”) The email reads like a quick note from the editor, not a typical website blast email with a roundup of links. It’s an original piece of content only dedicated readers receive.

In its first week back, the email featured a Trump Soho ad, a New York-specific buy that generated some income for The Awl. Still, Cho is realistic about the promise of the email for now. “From an advertisers perspective, I think right now we’re still very much in a kind of an incubating mode for the newsletter,” Cho told me. He said the Trump ad “sort of fell in [their] lap,” but generally he plans to sell the email ad space as a free bonus if advertisers purchase more ads on the site. (Sicha gleefully described it as “adjacency!”) Right now only about 2,500 people subscribe. They expect more readers to sign on once they make the signup a more prominent feature on the site.

In terms of handling all the negotiating and sales, Cho said they have a variety of deals with outside firms, like Federated Media. “I think we’re getting to a good place with advertising,” Cho said. “It takes time to build momentum and for people to understand what your site is. The growth of the site is very helpful.”

Up next

In the next few months, The Awl will grow into a network of sites. One planned site already has a lead writer and a topic picked out; another has a writer, but no topic yet. Cho expects to work out a topic with the writer that could work for potential advertisers he has lined up. But overall, the plan is the same as it was for The Awl. “Our plan is to rollout more sites with great writers,” Cho told me. “That was always what the site was going to be, to give talented writers a place to talk and write.”

I pressed Cho for details on the new sites to come. The one nugget I got: “We’re not going to launch a poetry site any time soon. We have a poetry section. I know how it does.”

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