Jenna and The Future





 As of March 29th, social networking sites such as Facebook and Twitter, which are set to generate more than $US 421 million dollars ad revenue in 2010, will come under regulation, in a voluntary move from the Distilled Spirits Industry Council of Australia (DSICA). 

The DSICA believes that such a code is in line with the dynamic and growing digital media industry and has asked distillers to not only monitor fan generated pages and websites for ‘inappropriate’ material, but to only place ads on sites where at least 70% of the audience is expected to be of legal drinking age. 

 Zac Martin, the newly appointed Social Media Marketing Manager for one of Melbourne’s biggest and oldest advertising agencies, George Patterson Y&R, is himself, evidence of the shift from print to I-pad in advertising; being the first agency to split ‘Digital’ into a specialised social media division. 

The DSICA is calling for distillers to monitor their brands and online content which as Mr. Martin concedes  “can be quite difficult,”  particularly when social networking sites are designed for and controlled by, members of the general public, “maintaining – let alone monitoring – an online community can be quite hard” he said. 

“At the moment (online advertising) is like the wild west, anyone can put whatever they want online,” says Monash University E-Marketing Lecturer, Peter Wagstaff, of the new advertising phenomenon. Whilst he admits that social media is flawed in terms of measurement and limited monitoring capabilities, he believes Marketers can actually use this freedom to their advantage and drive fan pages through the use of viral marketing. 

Carlton Draught has managed to dodge the DSICA’s new code by setting up a micro-site for it’s new ‘Tingle’ Campaign (see videos below). However, after only two days online and 56 negative viewer comments, Draught decided to take the site down. To avoid further controversy but still gain a return on their $200, 000 investment, the Draught team decided to post the videos up on social networking free-for-all site, You Tube.   

Mr. Wagstaff says the beer giant’s mini-series success can be attributed to their ability to be sent virally, and so whilst carrying the brand’s message, Carlton Draught remained somewhat removed from the campaign and detached itself from complaints and public scrutiny. How? “Because it’s all opt-in,” says Mr. Wagstaff. 

“Online, people choose whether or not they’re exposed to content, unlike Television where you don’t really have a choice” he said. 

The DSICA’s new code does not extend to popular sites such as You Tube nor regulates the circulation of viral campaigns.  It is this viewer autonomy and permissible element of social media advertising that has created loopholes in the new code and no doubt codes to comes. The question remains then – how do broadcasting authorities regulate something that 1 in 5 tweets contribute to? 





Interview with GPYR Social Media Marketing Manager Zac Martin 

Interview with E-Marketing Expert Peter Wagstaff 



WAGSTAFF’S HOLDEN VS. FORD SOCIAL NETWORKING STUDY!/holdenaustralia?ref=search&sid=569791622.3265869042..1!/pages/Holden/39227878688?ref=search&sid=569791622.3265869042..1!/pages/Holden-Vs-Ford-The-Cars-The-Culture-The-Competition/120503894700?ref=ts 









Last week the Audit Bureau of Circulation released a report in which all but two, Australian newspapers declined in readership. 

Nevertheless, more people than ever before are consuming news – they’re just going online for it. 

The Problem 

Last month in a keynote address to the major News Editors’ Convention, Eric Schmidt, CEO of the $23.6 billion dollar internet cash cow Google, observed that “as print circulation falls, the growth in the online audience is dramatic.” 

 “Newspapers don’t have a demand problem – they have a business model problem.” 

Statistics from the Essential Media Survey conducted by The Future of Journalism Alliance, support Mr. Schmidt’s observations, with the use of online news sites increasing by 13 per cent while newspapers decreasing by 6 per cent. 

Evident in the timeline below, while the print medium is suffering from a loss in buyers, a $7.8 billion dollar loss in advertising sales and an inefficient business model; the online news business is enjoying steady growth, with “real opportunity” according to Brett Nicholson, Online Account Manager for Next Digital advertising agency in Melbourne. 

The Opportunity 

“It’s a really big growth area that we’re seeing used more and more as broadband continues to improve,” he said when asked about the prevalence of online advertising – now accounting for at least half of marketing budgets, with $512.5 million spent on online advertising in the last three months. 

James Toepfer, the Australian and New Zealand Marketing Manager for Google, said that we have moved from a push to a pull marketing tactic, with online giving you the ability to target the person “who’s actually interested in your promotion.” 

“And that’s how online marketing is becoming a very successful medium, it’s allowing advertisers to get a large reach; so advertisers will pay to be in the relevant place when someone’s reading an article or searching for a topic.” 

Content Still ‘King’ 

Consequently, the ad sales that once contributed to 80 per cent of a newspaper’s revenue, have now moved online where Mr. Toepfer says, if placed somewhere that is “relevant to the content being consumed, (then it) can add value to the user’s experience.”  

Mr. Toepfer and Mr. Nicholson both agreed that “content is crucial” for the new business model to work. 

“I think content is going to be the real opportunity whether it’s paid content, or content that gives people free access to it…advertising can only get you so far,” Mr. Nicholson said. 

But Mr. Toepfer, the Google Marketer, and Mr. Nicholson, the Digital Ad Exec, have different reasons for why content is going to be “king” – as Mr. Nicholson put it. 


“Google’s mission is to organise the world’s  information and make it universally accessible and useful,” said Mr. Toepfer. consequently, sources that are reputable and provide “rich” content will receive the most traffic from sites like Google. 

Having witnessed the success of Google and its value-added approach, Mr. Toepfer believes “people will pay for content if it’s really rich content that they can’t get everywhere.” 

On the flip-side, Mr. Nicholson believes content will be crucial in terms of advertisers helping fund an online newspaper. 

“If we can find a way for a consumer to pay for the content they’re consuming, it’s a lot richer in terms of their actual niche and if you can reach them through these channels, from a marketing point of view, there’s a lot more to be gained.” 

Subsciption vs. Advertising 

A poll conducted by Adbiquitous found that 86 per cent of the sampled Gen Ys were happy to have more online ads if it meant not having to pay for the internet. 

One student even commented “news is something that is just so readily available why would we pay for it? We’re just so use to getting it for free.” 

The New Online Business Model 

However, has proven Mr. Toepfer’s predication to be correct – people will pay for news. Consequently advertisers will also ‘pay’ for news (readers) as Mr. Nicholson suggested. 

Crikey celebrated its 10th birthday in February and the $4 million dollar online business has survived thanks to a healthy fan and sponsorship base. 

 Crikey’s 14,000 subscribers generate $2 million dollars for the online paper, while its 250,000 unique monthly visitors attract another $2 million in advertising sales.   




 Listen to James Toepfer Interview 

Listen to Brett Nicholson Interview 



























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