nox july 2012

JULY 2012 BUSINESS NEWSLETTERDATE ISSUED : JULY 2012

Advertising is a very competitive business, and that isn't going to change soon. The

traditional media are watching their revenues gradually wane, while brands clamour

to get more bang for their advertising buck. Thankfully, some of the attention (and

budgets) is turning to online, where new advertising ideas are born every minute.

User Generated Content (UGC), also known as consumer-generated media (CGM), refers to any

material created and uploaded to the Internet by non-media professionals, whether it’s a

comment left on Amazon. com, a professional-quality video uploaded to YouTube, or a student’s

pro� le on Facebook. UGC has been around in one form or another since the earliest days of the

Internet itself. But in the past �ve years, thanks to the growing availability of high-speed Internet

access and search technology, it has become one of the dominant forms of global media. It is

currently one of the fastest growing forms of content on the Internet. UGC is fundamentally

altering how audiences interact with the Internet, and how advertisers reach those audiences.

News Online Xchange (NOX) is the o�cial monthly business newsletter of New Media Services Pty. Ltd. It serves to give up-to-date information on the products and services under the NMS brand, as well as news involving the Web and Mobile industries.

In 2006, UGC sites attracted 69 million users in the United States alone, and in 2007 generated $1 billion in advertising revenue. By 2011, UGC sites are

projected to attract 101 million users in the U.S. and earn $4.3 billion in ad revenue.

The Role of User-Generated Content in Digital Advertising

(Continued on next page.)

Person of the Year

`

News Online Xchange

Content moderation in context of a digital advertising agency is analyzing and editing user-generated material in

order for it to be socially acceptable and Brand approved for the general public to view via Internet-based media.

w e [email protected]

www.newmediaservices.com.au

Content Moderation in Digital Advertising, Up Close And Personal

JULY 2012 BUSINESS NEWSLETTERNews Online Xchange



(Continued from previous page.)

Source: eMarketer, January 2009

UGC and social networking as a major force on the Internet represents the greatest opportunity and challenge to marketers since the advent of the Internet

itself. In the larger eco-system, social networking and UGC sites have provided high-value advertising inventory and audience segments needed to capture

more of the market share and targeted audience reach that advertisers demand, e.g. Microsoft’s investment in Facebook, Google’s acquisition of YouTube, and

News Corps.’ acquisition of MySpace.

While all advertising on the Web is interactive by nature, but UGC sites o�er a unique and

more complex level of engagement. Instead of inviting individual consumers into an

environment of their own making, marketers advertising on UGC sites are entering a

conversation initiated, maintained, and “owned” by consumers themselves. This requires

those marketers to behave di�erently, or risk what can be very vocal disapproval from

those consumers. UGC and Social Networking isn’t all “child’s play” either. A Fall 2006

analysis by comScore Media Metrix showed that more than half of MySpace users were

over 35 years old, and that 25-year-olds accounted for 71% of Friendster users. Separately,

executive networking site LinkedIn, reports that its average user is 39 years-old and has an

annual income of $139,000.

Today, brands of all sizes are eager to jump into the

UGC/social networking environment. But doing so

blindly—without clear objectives in mind—can lead to

an unsatisfying experience. As with any new environ-

ment, it’s important � rst to understand where you want

to go and how you can get there before diving in.

UGC/social networking o�ers brand-building opportu-

nities far beyond what’s available through traditional

advertising, but taking advantage of those opportuni-

ties means �rst grasping some basics.

How does UGC o�er something unique?

Traditionally, marketers have been able to buy time or space on � xed media in a controlled context. They knew where their ad would appear, what it would

look like, and perhaps most important, in what context it would be seen. In other words, they could be guaranteed their message wasn’t being delivered in a

hostile or inappropriate environment. Today, such guarantees are harder to make, and that lack of control can be a source of great anxiety for marketers. But it

also represents an unrivaled opportunity.Advertising in UGC requires marketers to alter their approach. Instead of broadcasting one-way messages at their

audiences, advertisers are compelled to engage in a conversation. Doing so carries risks, but failure to do so carries more.

Note: includes video, audio, photo sharing, blogs, wikis, personal Web sites, podcasts and online bulletin boards

15.4

71.3

21.2

11.6

82.5

18.1

79.7

23.9

13.9

88.5

20.6

87.7

26.7

15.4

95.3

22.7

94.7

28.5

16.9

101.7

24.9

100.1

30.2

18.4

108.0

27.2

105.3

32.1

19.1

114.5

User-generated video

Social networking

Blogs

Virtual Worlds

User generated content creators

2008 2009 2010 2011 2012 2013

Comparisons to other forms of advertising

US User-Generated Content Creators, by Content Type, 2008-2013 (millions)

Worldwide User-Generated Content Creators, 2006-2011 (millions)2006

2007

2008

2009

2010

2011

117.9

136.5

157.5

182.3

211.1

237.7




Strict policies must be set and applied to govern

content authenticity, originality, privacy,

political/social correctness and legalities, both

locally and globally. Such policies should permit

and promote UGC and sustain viable social

network interac¬tions. Inappropriate content

includes, but is not limited to, profanity, sedition,

violence, bare skin, false and outdated information,

spam and other inappropriate content.

It is crucial to ensure that only appropriate UGC

is posted on the Web site by screening and

�ltering for mal-content. Failing to do so could

severely impact user tra�c, company brand and

the bottom line. The huge growth and

pervasive¬ness of UGC within companies’ core

online user experience poses potentially

complex challenges and heightens unnecessary

exposure to risk.

Content moderation has grown into a discipline that requires expertise in pattern detection and analysis. Although there are numerous software-

based solutions in the market, they do not address the custom needs of particular businesses. With the right level of investment in moderating

content, Web site operators can create an optimal strategy that maximizes customer satisfaction while minimizing abuse and impact on the

company’s brand and reputation. With the increasing growth of UGC, as well as the technology, cost and scale needed to moderate it, achieving an

optimal long-term solution requires detailed strategic planning and execution. A variety of options currently exist to help Web site operators protect

and optimize their investments and reduce increasing moderation costs. Many organizations have outsourced their content moderation operations

to reduce costs and enable more scalable and predictable business outcomes. Others have implemented both custom and standardized technology

options to replace existing technology or to cut devel¬opment and maintenance expenses.

Some companies have also experimented with content moderation crowdsourcing solutions to replace human moderation, with mixed success.

While seemingly leveraging an unlimited number of resources at minimal cost may seem ideal, crowdsourcing to date still produces poor modera-

tion quality. Other Web sites have gone purely with community moderation to reduce costs, but this also may produce mixed results, as the

moderation of UGC can become overwhelm¬ing even for members

Thus, many solutions are available for content moderation and evaluation, implementation and management. However, �nding the right content

moderation solution could be a di�cult endeavor without solid strategic advice and a well-thought-out approach, leveraging industry best

practices customized for speci�c needs, as well as a clear understanding of the objectives and ecosystem of your Web site.

Machine Moderation Community Moderation Human Moderation

Need for Content Moderation

THINKING THROUGH CONTENT MODERATION

CONTENT MODERATION METHODS HOW BAD CONTENT ISDETERMINED.

Reputation

Know Content

Flagging and Feedback

Standards & Policy




Investing in digital marketing pays backs with high ROI. Even a simple tweet or a Facebook post can

bring glory to a business- if everything is performed properly.

In the past decades, businesses were paying newspaper and magazine publications to print their ads.

Public relations departments of big companies played the game by begging TV producers for interviews.

Now, the marketing landscape has changed. Digital advertising gave rise to a new dimension of

attracting and in�uencing customers. With this new marketing approach, businesses can reach their

customers in a more a�ordable, convenient and engaging way.

According to pros, digital advertising allows businesses to deal with their customers and consumers

directly via the internet. The former approach deals with businesses approaching media people who

impart the promotional message to the target audience (two-way process).

Viral web materials are a proven ingredient of today’s business promotion. YouTube has been taking part

in helping businesses spread their viral videos. Viral videos, which are mostly humorous clips, are shared

by viewers to others on the internet for free. Thus, successful advertising creations nowadays are mostly

novel, interesting and pop culture-based.

Most businesses seeking for international prominence create a Facebook

page. They get moderators to manage the social media page. Facebook

groups can narrow down the target audience of a business page. Other

businesses use other social networking sites, like Twitter and Google Plus,

to directly socialize with their customers.

Social media buttons and plug-ins are also becoming essential website

components. The buttons allow visitors to share the website link to their

social networking circles.

Tablets and internet-enabled phones are replacing the old version of mobile

phones that only allow calling and texting functions. These new gadgets

facilitate digital advertisements in reaching a wider range of audiences.

Digital advertising sparked a new level of transparency among businesses.

Websites, social networking sites, blog sites and digital advertisements can be

accessed anytime and anywhere by anyone. Information, both the truthful and

fabricated ones, is over�owing on the web. Moderation services make sure

that web entries and advertisements associated to the business do not

damage the reputation of a business.

Digital Advertising: Today’s Marketing Approach




CPM FOR FACEBOOK ADS BY DEMOGRAPHIC

$1.16

$1.05

$1.24

$1.14

$1.28

$2.47

$2.00

$3.22

$2.66

$3.15

$2.44

$3.56

CPM FOR FACEBOOK ADS BY DEMOGRAPHICREGION 2011 2012 2013 2014 2015

How much do sites pro�t from UGC?

Estimated Revenue for each site in 2010:

UGC Advertising StatisticsCPM (Cost per 1000 Impressions) for Various Sites

All based on US Market

Information Highway

45MILLION 243MILLION 288MILLION 945MILLION 1.860BILLIONM

ARR

IED

North America

Western Europe

Asia-Paci�c

Eastern Europe

Latin America

Middle East and Africa

The Rise and Fall of Advertising Media

-10%

1% 2% 9% 11% 14%32%

75%

% change in advertising spend (2009-2010)

41.7%

28.8%

24.1%

2.7%

2.2%

0.5%

41.8%

28.0%

24.6%

2.7%

2.5%

0.7%

41.5%

27.3%

25.1%

2.7%

2.5%

0.9%

40.7%

27.0%

25.8%

2.8%

2.8%

1.1%

40.2%

26.5%

26.2%

2.8%

3.1%

1.3%

Maximize your websites social potential by adding an Instant Messenger feature!

Newspaper Magazines Outdoor Radio Television Internet Social Media Mobile Marketing

nox july 2012

Business