Consumer-Generated Media

Student Essays

            Taking the Lead: Consumers and Advertising

            Technological advances have forced society to adjust to new changes. In most recent years, internet has been integrated into our daily lives for more convenient ways of living. With its uncountable capabilities, we have found new ways to communicate, educate, work, and play. Along those same lines, the World Wide Web has changed the playing field for marketers and advertisers by enhancing the definition of word-of-mouth. This concept is no longer limited to small talk on the job or neighborly gossip, but extends to a laptop or desktop and potentially larger audiences. The combination of innovation and a traditional communication tactic has begun the evolution of consumer-generated media (CGM).

            Postings found on internet discussion boards, blogs, forums, and social network sites are all examples of consumer-generated media. Large internet portals such as Yahoo! and America Online draw in the most viewers to fuel discussions. Blogs, maintained by either an individual or organized groups, are similar to diaries that are frequently updated (Blackshaw, P., & Nazzaro, M., 2006).  Also referred to as user-generated content, these mediums portray opinions through text, video, podcasts, etc. Anecdotes and viewpoints are derived from average Joe consumers who have had personal experience with a product, service or brand. CGM allows end-users to provide influential data for potential consumers’ purchases or interactions with companies (Consumer generated media, 2008). With overwhelming advertising messages, consumers are running to online communities for advice.

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Since 2005, it has been predicted that advertisers would have to embrace CGM to strengthen their end results because of this medium leaving traditional media in the dust. As stated in regards to other advertising tactics, advertisers must follow the medium. CGM helps cultivate a brand. Consumers determine what brands are successful through experience, and through their experience, potential consumers are given access to the pros and cons of a product before interacting with it themselves. In blogs and posts, companies aren’t needed to help define brands—audiences uncover their own perspectives. “Advertising is a vital part of the connections or bridges […] between brand and consumer. And up until now, this process was an exclusive club—a marketing autocracy—where marketers controlled the when, where, what and how; the exposure place and time; the medium and the message. Now consumers have found their voices. And we’d better take advantage of it,” said Manuel Coto, a blogger for Marketing Weblog (Coto, M., 2007, para 6).  With access to such key information, it is important for advertisers to use the messages to their advantage. Consumer complaints tell what’s going wrong, while compliments show success. Advertisers can separate the two ideas and fix current and potential problems that they are delivering to their target audiences “Marketing departments and advertising agencies go to great expense and time to determine what the market is looking for in products and for new trends. CGM allows these corporations to look into a consumer’s conversation with another consumer where ideas are exchanged for new product ideas,” said Kyle Grant, a sponsored search marketing strategist (Grant, K., 2007)..

Unfortunately, entering the world of CGM is risky because opinions formulate along a large scale. “There is a wide spectrum of interaction and intimacy across CGM platforms: personal blogs, real-time chat rooms, private chats, public discussion boards, password-protected e-mail groups and a host of other venues. And there is no absolute rule for what different points along those spectrums mean for the effectiveness of different forms of advertising,” said Max Kalehoff, an ad media specialist (Kalehoff, M., 2006). People have a right to voice their thoughts whether companies feel that statements are true or not. Unlike paid media, CGM is uncontrolled—perhaps why consumers are constantly engaging in this new outlet. Feeding off of that idea, it is key that advertisers understand the sensitivity in CGM. These discussions are conducted by passionate audiences and should not see advertisers or companies as intruders. They have to take a more delicate approach than traditional advertising. 

In the consumer-generated

media atmosphere, blogs are one of the most popular forms and can be dated back to the when internet first took the scene. Blogging allows freedom of speech, sharing of knowledge, and can be seen as a diary that attracts potential friends or supporters. At the same time, blogs demand time and effort. If unmaintained, they lose their attraction and followers. In relation to advertising, they give great detail on the impressions that brands’ products and services have left with them.

“Blogs have potential to help the organization develop stronger relationships and brand loyalty with its customers, as they interact with the 'human face' of the organization through blogs,” said Gary McGovern, writer for WebProNews. Most recently, companies are developing their own blogs campaigns as new advertising techniques. For example, in late 2008 Budget Car Rental tried their first approach at using blogs for advertising and promotion. The campaign is a treasure hunt, where Budget hides a $10,000 prize each week in four cities over four weeks, giving away $160,000 total. Players search for clues on the Budget blog, which is being advertised by other blogs around the Web. As an added touch, it’s an all-cartoon viral ad campaign featuring the cartoons of Hugh MacLeod. This innovative approach was organized by B.L. Ochman (Green, H., 2008).

Sources:

Blackshaw, P., & Nazzaro, M. (2006). Consumer-generated media (CGM) 101: second edition. Retrieved

January 17, 2009, from Nielsen Online Web site: http://www.nielsen-online.com/downloads/us/buzz/nbzm_wp_CGM101.pdf

Coto, M. (2007). Consumer generated content: a threat or opportunity. Retrieved January 17, 2009, f  from Marketing Weblog Web site:

http://marketing.blogs.ie.edu/archives/2007/02/consumer_genera.php

Consumer generated media. (2008). Retrieved January 17, 2009, from Wikipedia:

http://en.wikipedia.org/wiki/Consumer-generated_media

Grant, K. (2007). User generated content and consumer generated media: enabling the branding

conversation. Retrieved January 17, 2009, from Enquiro Web site: http://www.enquiro.com/marketing-monitor/Use-Generated-Content-Consumer-Generated-Media.asp

Green, H. (2008). Budget’s viral blog campaign. Retrieved January 17, 2009, from BusinessWeek

            Web site:

http://www.businessweek.com/the_thread/blogspotting/archives/2005/10/budgets_viral_b.html

Kalehoff, M. (2006). Ad media specialist must embrace consumer-generated media. Retrieved

January 17, 2009, from Attention Max Web site: http://www.attentionmax.com/blog/2006/08/ad_media_specialists_must_embrace_consumer-generated_media.php

McGovern, G. (2004). Blog and blogging: advantages and disadvantages. Retrieved January 17, 2009,

From WebProNews Web site: http://www.webpronews.com/topnews/2004/08/23/blogs-and-blogging-advantages-and-disadvantages

WHAT IS CONSUMER GENERATED MEDIA?

            In an effort to define this type of media, one must look first at the word consumer.  Where a great deal of the media revolving around products or services that was put out into the world used to be generated or created by the advertisers of these products themselves, this new way of advertising focuses on the opinions of the consumers about specific products.  In Blogs, discussion forums, Wikis, and other sites where consumers are able to post messages containing their opinions or responses to advertisements others on the internet are able to get real life testimonials on products they are considering.  Examples of a consumer blog can be found at www.bloggersblog.com. This type of media came from simple responses from customers and with the advance of the internet and the increasing number of users that frequent it these responses could be made visible for the public.

            Over time, this term has come to include video and podcasts and other digital media as technology grows and users as well as consumers become more and more familiar and comfortable with this type of media.  This type of media focuses on the actual product themselves and gives those who read the responses or watch the videos a balanced look at whatever it is that is being advertised.  Not just the advertisers biased point of view.

WHAT ARE THE PROMISES AND POTENTIALS OF CGM?

            CGM essentially spreads the word about a particular business or product using the customers themselves not corporate sponsored advertising which only gives one biased side of things.  If the product is good, and is received well by customers, this can be used to the company’s advantage.  Think about it.  If you have a customer that is really enjoying his or her experience with the product what better way to get the name and image of the company out there to the public then by letting the customer talk up a storm about all the positive aspects of the product or service.

            One of the most important things when it comes to CGM is the concept of positive word of mouth.  When a consumer watches ads on television or hears an advertisement on the radio while they are driving in their car, most of the time they mentally tune out whatever it is that is being bombarded into their brains.  It doesn’t take them long to make the connection that what they are hearing or seeing is being brought to them by the company themselves.  The business is paying someone to say all of these nice things about the product or service or whatever it may be.  Most people are smarter then they look and we as consumers have become pretty good at deciphering these messages and taking them with a grain of salt knowing the fact that anyone would say these things about a company for a the right price.

            Then came the consumer blog and discussion forums and other areas where consumers themselves can take about products and businesses in their own free will with no monetary connection whatsoever.  And people LOVE this.  This has to be one of the most positive things about and CGM, the fact that people are really giving their true opinion and not simply being paid to say these nice things. 

            Companies soon had to begin to worry about whether or not their product was truly good and whether or not it made a good impression on consumers.  Before companies primarily had to worry about simply getting their product out the door and making money.  If it meant lying to get customers to buy it so be it.  Now their reputation was at stake and if their product didn’t perform to the liking of the customers then others are going to hear about it via consumer generated technology and the internet.

            Customers need to hear from real life people and real life product or service users that a product they are considering is worth the time and money they are going to spend to purchase and consume it.  They want facts and opinions, not just the hype that companies themselves put out as advertisements.  This I believe is by far the most positive thing about CGM, the fact that it focuses on the truth behind the products.  Real life experiences and testimonials.

            “Consumer Generated Media represents long-lasting sources of influence,” said Pete Blackshaw of ClickZ.com(www.clickz.com ).  It gives companies something to refer back to that is from actual customers, and if a product gives a good impression can be a great competitive advantage from marketers.

            CGM is one of the fastest growing mediums today and for companies to jump on the bandwagon and get their name out their via blogs or videos and the like is to their advantage. BusinessWeek estimates that some companies can actually estimate 1.4 billion comments a day on their consumer response sites and every year this number grows by 30%.

            Another positive aspect of this kind of media is that it leaves a digital trail and gives consumers something to refer back to when making decisions about consumption.  When consumers blog about products it is often done somewhat unconscious so true feelings are let out and readers can get a true picture of the product.  The media used is rich in form and is ever advancing with technology.

BLOGS

            The potential of consumer blogs continues to grow.  As Bradshaw mentions “The majority of today's blogs are rich, unaided first-person narratives across a host of topics. Often, the texture of brand commentary is incidental, implied, even unconscious in nature. This can shed light on how advertising truly works.” 

*The following chart provides blog statistics worldwide*

            When it comes to the trends of consumer blogs revolving around products the thing that must be focused on will always be the message.  No matter what other features accompany the text, the blog must portray the desired message to readers, whether it be positive or negative.

*The following graph shows common trends on actual blog pages*

            Overall the trends of consumer blogs really depend on the trends of digital media.  They can be quite advanced or very plain and simple.  The only thing that must remain in tact is the message.  Some companies have specific blogs for their brands and topics where it gives the consumer a change to give them feedback and other blogs are done of specific blogging sites generated by the consumer themselves.  One can simply go to Google (www.google.com ) and type in any product or brand category and get a whole list of websites that could offer blogs about these companies.  All they have to do from there is say what they feel about the product.  Blogs are so simple and that is one of the reasons that draws both writers and readers into them.

***The following is a list of some of the top bloggers spots on the internet:

TOP 100 BLOGS

            Since blogging has been around longer then some of the other CGM, the effectiveness is a little easier to measure.  Blogging is just more than hits and click-throughs.  It is what is being said in the words being written.  The persuasion power that writers have when they write about products and brands is one of the strongest features of the blog.  As stated before the return on investment that companies receive is always greater when the message is a positive one.  Obviously negative messages are not really going to get people to go out their and purchase the product.  If what is being sold by companies is a good product or a worthwhile service the effectiveness of blogs is going to be greater when the product is being spoken about in a positive light.

            One of the limitations of the blog can be focused on time.  Some people simply do not have the luxury of time to search the web for information on a specific product.  They hear an advertisement and then go right out and buy the product.  The time spent researching the product is not worth it to them.  They would rather test it out for themselves regardless of any money that could possibly be lost in the process.  The other negative aspect of blogs is the fact that some people simply do not know where to find them.  Yes, you can search the internet to find blogs pertaining to a variety of topics but are these blogs legitimate?  Is what is being written on them truthful?  Some writers on these blogs could have extreme brand hate for a particular product or service or have had a rare encounter with something that makes what they write a little or even a lot skewed from the actual truth and others experiences.  These are just some of the risks people take when reading blogs.

            Overall blogs are one of the strongest and longest lasting forms of CGM.  They will be around for years to come and will most likely only get better and more effective with time.  They will continue to provide wondering customers testimonials on the lastest products and as long as advertising and improving technology continues to develop in the creative and productive world the blog will continue to be one of the strongest most popular forms of and consumer generated media.

WORKS CITED

Blackshaw, P. The pocket guide to consumer generated media. ClcikZ.com: News and expert advice for the digital marketer. Retrieved June 4, 2008, from http://www.clickz.com/showPage.html?page=3515576

Brown, S. Top Blog Trends. Modern Life. Retrieved June 4, 2008, from http://www.modernlifeisrubbish.co.uk/article/leading-average-top-blog-trends

CNET News. Blog 100. Retrieved June 4, 2008, from http://news.cnet.com/CNET-News.coms-Blog-100/2009-12_3-5887900.html

Hallett, J. Blog Effectiveness. Hyku Blog. Retrieved June 4, 2008, from http://hyku.com/blog/archives/000222.html

 

The Consumerist. Shoppers Bite Back. Retrieved June 4, 2008, from http://consumerist.com/  

Wikipedia. Consumer Generated Media (CGM) Retrieved June 3, 2008, from http://en.wikipedia.org/wiki/Consumer_generated_media

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Consumer Generated Media

     What is consumer generated media? Is it user driven, user led, or both? What impacts or potential implications does it carry with it? In this essay, I’m going to examine the definition, current forms, and promises and perils of consumer generated media in an attempt to further explore the issue.

      At a casual glance, CGM simply seems to be a form of media or mediums pushed by consumers. Upon examination though, it can be seen that CGM is a form of media production that is not only establishing itself as a viable medium, but is also playing off current technologies and communication mediums like blogs or common interest forums to establish itself further. The Cymphony knowledge bank defines the phenomena it as follows: “Consumer-Generated Media (CGM) is content created online by anyone (other than a professional journalist) that is made available to other consumers through digital technology. Blogs, message boards, online forums, Usenet groups, and consumer feedback sites are the most common examples. Marketers and communications professionals can benefit from CGM by “listening” to what the consumers are saying to gain unfiltered insights.” –Cymphony.com http://www.cymfony.com/know_center_cgm.asp

http://marketinggreen.wordpress.com/2007/01/30/consumer-generated-media-as-green-marketing-driver/

  CGM thrives on a very popular concept/movement in today’s digital society: the empowerment of the user. More than ever, qualification is not a precursor to putting content up for the world to see, especially through the web. Columnist Cathrine Taylor of Brandweek echoed this statement in a 2007 report which stated, “… but let's face it: The biggest breakthrough in online advertising in 2006 was consumer-generated media, which allowed consumers and advertisers to sidestep the agencies' role of keeper of the creative flame (Taylor, 28).” Essentially, Taylor’s point is further enforcement of the fact that media is beginning to become a collaborative, instead of an exclusive effort on the part of agencies and large companies.

     As a result, CGM has brought, and is still poised to bring many benefits to the digital community. A 2008 interview with Pete Blackshaw, CMO of Nielsen Buzzmetrics by the Marketing Green online column stated, “.. The creation and distribution of consumer-generated media (CGM) online is rapidly changing the marketing landscape. Consumers are actively participating online, providing opinions, perspective and feedback on the products and brands they like and dislike through a variety of channels…(Blackshaw, 1).”

 Consumer Generated Media can also be used as an excellent market intelligence tool. Marketing departments and advertising agencies go to great lengths to determine what the market is looking for in products and new trends. CGM allows these corporations to essentially take a look into a consumer’s conversation with another consumer. This idea exchange process is where many new product ideas derive from. For example, Microsoft’s Flight Simulator has been designed to allow users to generate content for the program, while Microsoft took notes. In turn, there was an explosion of ideas and suggestions when the new Flight Simulator X was planned; Microsoft listened. As a result, Microsoft Flight Simulator still maintains its position of one of the best selling computer simulation games on the market. It must be kept in mind that competitive intelligence has always been important in determining business strategies. The ability to able to predict a competitor move and determine new competitive products/product features is vital to the success of businesses. CGM also cooperates well with another competitive intelligence component, UGC (user generated content). Since UGC is uncensored, competitors can have massive insight into consumer satisfaction with the competition; perhaps more importantly consumer dissatisfaction. The opportunities that come along by being able to foretell what the market truly thinks of the competition and their products or services are immeasurable. Seeing consumer satisfaction can present a never-before seen opportunity to move quickly in analyzing competitor strengths and weaknesses. http://en.wikipedia.org/wiki/Consumer_generated_media

Of course, consumer generated media is not without its perils. Advertising Age columnist Bob Garfield warns caution in the development of CGM, mainly in the area of its advertising. In a 2007 column, he noted: “Advertising is not the future of marketing.

No, it will not entirely disappear. Yes, it will play a role. But the 30-second mini-movie is not a growth industry (Garfield, 17).” Essentially, advertising is meant to push a product, not vice versa. This presents the possible peril of CGM advertising becoming more powerful than the product or medium.

     An additional peril could be for marketers. By helping facilitate content creation, companies are controlling consumer brands in some ways, and having an extremely powerful say in what direction they will move. More than ever though, today’s consumers are expressing their opinions online, both solicited and non-solicited.  Smart marketers are learning to channel this energy to support their endeavors, and suppress dissenting voices against corporate brands.

Another possible peril is the accuracy and authority of posted information documents, such as blog and user group usage. How will it be regulated? Who will regulate this information for accountability and accuracy? Will the concepts of “citation from authority” change and evolve or remain the same as a result of CGM. While it still seems quite early to answer the majority of these questions, they are interesting challenges on the road ahead.

 http://www.nielsenbuzzmetrics.com/whitepapers

      The future of CGM seems full of possibilities. Advertising Age columnist Bob Garfield also predicts that, “ …Digital tools and database marketing will open channels of communication and reservoirs of information that will relegate display advertising as we've known it to a subsidiary role. Most likely, it will serve as a series of signposts-logos and simple messages pointing users to websites where the real action is (Garfield, 17).”

Besides the heavy implications on marketing and advertising (reviewed earlier in the essay), there are many social (eSeeding) and blog sites poised to help shape the CGM of the future. These include Associated Content, Brickfish, Daily Motion, Ebay, Digg, Facebook, Newgrounds, Flickr, Epinions, Friends Requested, Trip Advisor, orkut, Helium.com, Myspace, Google, Outloud TV, Piczo, Picasa, Revver, Second Life, Trip Advisor, TypePad, Urban Dictionary, Widget Box, Wikipedia, Wix, Woophy, Wordpress, and Yelp. These sites and services, with strong user centered bases will aid in influencing a vast amount of information that will be pushed in the near future. (1025)

Works Cited

BlackShaw, Pete. (2008). Why brand advocacy matters. Retrieved June 5, 2008 Site: http://notetaker.typepad.com/

eWareness (2008). Get the word out. Retrived June 4, 2008 Site: http://www.mindcomet.com/solutions/ewareness/broadcasting-solutions.php

Garfield, Bob. (2007). Consumer generated ads will only get you so far. Advertising Age, p.17. 

Marketing Green. (2008). Consumer generated media as a driver of green marketing. Retrived June 5, 2008 Site: http://marketinggreen.wordpress.com/2007/01/30/consumer-generated-media-as-green-marketing-driver/

Taylor, Cathrine P (2007) Best consumer generated media. Brandweek, p.28

Consumer-Generated Media

What is Consumer-Generated Media

Consumer-Generated Media (CGM) is the term used to describe various kinds of media content, that is made publicly available, and produced by end users.  The term first originated as a reference to posts made by consumers within online venues such as internet forums, blogs, wikis, discussion lists etc.. Discussions centered around quality and likes and dislikes of products they had purchased. The venues drew attention from shoppers who who prefer to research a product before buying and value other consumers' opinions on the product.

Examples of CGM include:

• Blogs
• Message boards and forums
• Public discussions (Usenet newsgroups)
• Discussions and forums on large email portals (
• Online opinion/review sites and services
• Online feedback/complaint sites

Over time, the term has evolved to include video, audio and multimedia.  Similar to CGM, these  entries are also in regards to the quality, likes and dislikes of products, brands and corporate institutions, only this time with video and/or a sound feed.

The entry of CGM into the advertising space was significant in that non-media professionals had the ability to publish their own opinions and content for public viewing.

CGM delivers high-impact, targeted ad impressions outside the scope of conversation by the companies that created the product, which is a distinguishing difference between the traditional end-user “word of mouth” marketing. CGM can more effectively match those who have opinions with those who want opinions before purchasing.

Promises of CGM

CGM is created by consumers and is often inspired by relevant product or service experiences with a product. End-user discussions about a product are typically archived online and are therefore convenient for those searching for information, regardless of the “newness” of the product.

Another benefit of CGM is the ease and affordability in which the end-user entry can be made. In addition, distribution of the content is either free or relatively low cost.

A third advantage is that CGM leaves a digital trail. Online traffic is easily measured, thus allowing advertisers to determine brand success, reputation, and message effectiveness. This data can then be fed into traditional forms of advertising. The data also serves advertisers to make more-informed decisions based on current trends.

“Consumers are dictating the terms of media reach, frequency, and impact. We must stay on top of this. Increasingly, we live in a consumer-controlled surveillance society, and CGM the currency.” Pete Blackshaw

Creating and sustaining word of mouth is a long-term strategy for a company. Evidence of word of mouth done right results in positive, enthusiastic, and permanently archived, consumer-generated media (CGM); ready and waiting for prospective customers.

"Creating WOM [word of mouth] should be a company's long-term strategy, not just a marketing tactic. Unfortunately, there has been so much hype about word of mouth being about buzz, viral emails, and publicity stunts that most people are not seeing the strategic value of word of mouth," said Jackie Huba.

Potential Perils of CGM

Consumers searching for information on a product using a search engine will most likely encounter CGM as some of the first search results. Similar results will be experienced by the media, analysts, regulators, competitors and other stakeholders and possibly used as reference material. Clearly one of the challenges of CGM is the company’s lacking ability to control the CGM content submitted by end-users.  This serves as a liability in the case of a product with mixed reviews.

Another frustration some feel towards CGM is the term’s imposed classification, said to perpetuate a distinction that diminishes entries.  CGM is intentionally disregarded because of the prevalence and affordability of the means of production and publication compared to traditional advertising.

Although CGM gives the appearance of pure end-user product opinion, some experts argue CGM can be influenced, although not controlled, by marketers – thus merely giving the impression of true CGM. Additionally, fans of traditional forms of advertising argue the quality of user-generated content is not up to par with the quality produced by formally trained writers. CGM, they claim, is contributing to the decline of standards in publishing, advertising, and newsreporting.

For now, society is left to decide for itself which content is to be believed, which is high-quality content, and which is low-quality content.  At least for now, it is up to the prospective buyer to filter out low-quality content; an ability they may not have had prior to the emergency of CGM.

User-Generated Videos

User-generated videos can be found on user-generated sites, which house free services whereby users can upload video clips and share them with the public. Although many sites place restrictions on the file size, duration, subject matter and format of the uploaded video file, most content is allowed, with exception of certain adult material.

Web sites in this category include: AtomUploads (part of AtomFilms) , Buzznet , Dailymotion , GameVideos.com , GoFish, Google Video , iFilm , Metacafe , Myspace , MyVideo , Yahoo! Video, YouAreTV , and one of the best known sites YouTube .

YouTube is the leader in the video advertising realm due to its advertising model. Encompassing custom channels and user-rated video ads, YouTube offers advertisers multiple opportunities to integrate advertising content and display it in a prominent fashion on the site. This advertising approach involves injecting ads into the community lifeblood of a site rather than off to the side or at the top.

There are two ways in which YouTube does this: Participatory Video Ads (PVAs) and Brand Channels. The Participatory Video Ads (PVA) are in a regular video spot; however, they have all community features of a typical YouTube vido so visitors can comment, share, embed and "favorite" the video.  Brand Channels are sponsored placements which advertisers can prominently feature their own branding on a page filled with video content around a particular theme.  YouTube visitors can subscribe to the “themed” channel and have access to all the videos from that channel on future visits to the site.

Challenges of User Generated Video

One particular concern for advertisers is what to do when end-user feedback turns negative.  UGV is powerful in that body language, verbial language, and video demonstrations, regardless of dramatization, can have devistating effects on a campaign.

“Art Sindlinger, activation director of social media and gaming at Starcom, warned that advertisers interested in asking consumers to get involved in a campaign need not just know their product's audience, but also their product's non-users. Several executives suggested that before marketers begin executing a user-generated campaign, they build contingency plans and prepare for whatever direction the campaign may go.” - Interactive Advertising Bureau User-Generated Content Conference.

This and other challenges may be the reason why, despite the sites’ popularity, CGV has disappointed advertisers in terms of ad revenue. Placing ads on user-generated sites, even the leader, YouTube, has been extremely difficult and futile in comparison to the expected success.

Future of User-Generated Video

One report says user-generated video growth is set to tail off, despite being a relatively new phenomenon (Screen Digest). At the end of 2006, user-generated videos made up 47 percent of the U.S. online video market (updated) of 12.5 billion total video streams, says the firm. By 2010, those figures will climb to just 55 percent of the 44 billion video streams expected to be consumed in the U.S. that year. (Klasseen)

At the same time, online video revenue is expected to grow to $900 million by 2010 from $200 million in 2006. User-generated video, which is mostly comprised of advertising, is expected to account for just 15 percent of the revenue. (Klasseen)

“Site owners and advertising agencies could struggle to find a cost-effective way to plan and place relevant advertising on millions of different videos. Whilst they are experiencing a period of trial and error searching for the right advertising formats, the sites risk losing their ‘cool’ factor as users are turned off by finding mainstream advertising on their personal videos.”  – Screen Digest Report

Works Cited

Blackshaw, Pete. “Is Word of Mouth a Long-Term Strategy” 4, October 2005. Downloaded on June 5, 2008 from ClickZ website:  http://www.clickz.com/showPage.html?page=3553036

Blackshaw, Pete. “The Pocket Guide to Consumer Generated Media” 28, June 2005. Downloaded on June 5, 2008 from ClickZ website: http://www.clickz.com/showPage.html?page=3515576

“CGM Overview” 2007-2008, Downloaded on June 5, 2008, from Nielsen BuzzMetrics:  http://www.nielsenbuzzmetrics.com/cgm

“Consumer Generated Media” 25, April 2008. Downloaded on June 5, 2008, from Wikipedia: http://en.wikipedia.org/wiki/Consumer_generated_media

Gannes, Liz. “User-Generated Video Growth Flattening” 15, January 2007, Downloaded on June 5, 2008, from NewTeeVee: http://newteevee.com/2007/01/15/user-generated-video-growth-flattening/

Klasseen, Abbey. “Video Report: The Role of User-Generated Content in Advertising”. 6, June 2007. Downloaded from AdvertisingAge on June 5, 2008: http://adage.com/digital/article?article_id=117115

“List of Video Sharing Websites”.  3, June 2008. Downloaded on June 5, 2008, from Wikipedia: http://en.wikipedia.org/wiki/List_of_video_sharing_websites

Marshall, Matt. “Crackle, after dropping user generated video, sees money rolling in” 10, September, 2007. Downloaded on June 5, 2008, from VentureBeat: http://venturebeat.com/2007/09/10/crackle-after-dropping-user-generated-video-sees-money-roll-in/

Rogers, Zachary. “YouTube Unveils Ad Products”. 22, August 2006. Downloaded from ClickZ on June 5, 2008: http://www.clickz.com/showPage.html?page=3623233

Tew, Chris. “Explosion of User Generated Video Sharing Sites - Will it Hit the Living Room?”. 20, September 2006. Downloaded on June 5, 2008 from PVRWire:  http://www.pvrwire.com/2006/09/20/explosion-of-user-generated-video-sharing-sites-will-it-hit-th/

Wegert, Tessa. “Advertising on User-Generated Video”. 19, July 2007. Downloaded on June 5, 2008 from ClickZ: http://www.clickz.com/showPage.html?page=3626456

                        Consumer generated media is created by consumers. It's often inspired by relevant product or service experiences and is frequently archived online for reader’s convenience and other consumers or key marketplace influencers. Examples of CGM include blog entries, consumer email feedback, message board posts, forum comments, personal Web sites, and personal email. CGM can be influenced, but not controlled, by marketers. CGM delivers high-impact, targeted ad impressions well outside the scope of conversation among "familiars," a big reason it bears an important distinction from word of mouth. Search in particular magnifies CGM reach and effect by matching those who create it with curious, information-hungry preshoppers. Most important, CGM leaves a digital trail. It's highly measurable, allowing advertisers to gauge brand equity, reputation, and message effectiveness in real time. Advertisers must take accountability for the scope and effect of such media and use it to make more-informed decisions.  "Consumer-generated media has an opportunity to be aligned with brands and content topics, consumers want to participate in communities, which leads to the need to leverage the benefits of editorial review, filtering, and programming" said Brightcove CEO Jeremy Allaire. One downfall of consumer generated media is that it can have a negative effect on a company’s reputation.  For businesses a damaged or negative reputation can mean millions of dollars. The importance of reputation management cannot be emphasized enough. In the wake of a negative experience and tarnished reputations, organizations have lost millions overnight, have had CEO's step down immediately and have even folded within months of negative publicity. Prior to the development of the Internet, news often traveled slowly and methodically, but with the increasing popularity of blogs and social networks, news tends to travel rapidly and reaches the masses with swiftness as never before. In many cases, the general public is aware of information about your organization that you may not even be aware of yet. Online reputation management is a necessity. Here are five suggestions for companies in fear of damaged reputations due to CMG.

1.       Monitor Your Existing Online Presence - consumers use search to find information. When they perform a query in hope of finding information on your organization or brand, you want to make sure that your website and online properties are listed high in the search results. In order to manage your online reputation, you need to know what is being said about your brand online. An easy way to do this is through tools such as Google Alerts to see how your brand is fairing in the online world of Google. Set up alerts for key branded phrases including your company name.

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2. Analyze Your Online Presence within the Search Engine Results - the search engine results update their index on a regular basis. With the increase in consumer generate content out there, it is not uncommon for a blogpost or negative article about your company to surface in the first page of organic search results. A company scandal or an ongoing lawsuit can provide fuel for the fire and can appear in the prime real estate of Google or other search engines. You need to get a grasp and develop a keen understanding of your search engine environment and that of your key competitors.

                        3. Control Your Online Destiny with Optimization - optimize your site and online properties so that you dominate the search results for your important branded terms. This includes optimizing your main corporate site, any micro-sites and sub-domains, corporate blogs, press releases, articles as well as online properties such as employee blogs and partner sites.

4. Control Your Online Destiny with Participation - Be active in industry forms, social networks, consumer review/opinion sites and the like. If your online reputation is suffering, participation within these areas can help change the negative perception that you may be incurring. Blogs are extremely popular for consumers and are often the first place they will go to find information. As a result commenting on blogs can help communicate your stance and promote your company in a positive light.

5. Repeat Steps One through Four - online reputation management only works if it is ongoing. Being proactive and understanding the consumer's perception of your brand and your organization is one of the best ways to begin with your online reputation management strategy.

Youtube was founded in February 2005, as a "consumer media company for people to watch and share original videos worldwide through a web experience". Youtube is a free service where subscribers can upload videos of any quality (including those shot using mobile phone video recorders), thereby sharing them with a potential audience numbering hundreds of millions. Links to newly posted videos enjoyed by viewers can be easily emailed to others, resulting in popular videos rapidly coming to the attention of large numbers of viewers. Originally intended exclusively for the sharing of consumer-generated videos, the site has evolved rapidly into a highly popular "entertainment destination", which includes clips from television programs, movies, sporting events and popular music.

Youtube has experienced an explosive rise in use. Youtube was the fastest growing website from January to June 2006, increasing its browsership by 297%, from a monthly unique audience of 4.9 million to 19.6 million. A greater proportion of 12–17-year olds have visited Youtube than any other demographic group, being 1.5 times more likely than the average web user to visit the site. Its immense success saw Google Inc (the world’s leading web search engine) acquire the site on 13 November 2006 for US$1.65 billion. Besides selling advertising space on the site, income is derived from partnerships with several US entertainment corporations (Columbia Broadcasting System, National Broadcasting Company, Universal Music group, Sony BMG Music Entertainment Group and The National Hockey League) www.nhl.com which have video content agreements with Youtube. Some of these agreements include advertising partnerships where revenue from advertisements that appears next to the videos is shared between Youtube and the company that supplied the video. Youtube is not the only website that relies on consumers to provide the bulk of the site content. Social networking sites such as MySpace (www.myspace.com) and knowledge-sharing sites such as Wikipedia (www.wikipedia.org) allow thousands of people to share opinions, stories, information and entertainment in a largely unrestricted environment. This unprecedented ability for any one person to share his or her experiences with millions of others, both inexpensively and instantaneously, is undoubtedly attractive to manufacturers and marketers of consumer goods. Time magazine named its Person of the Year for 2006 "You", in light of the growing popularity and powerful influence of consumer-generated content websites such as Youtube.

Works Cited:

1. Freeman, Becky. "Is "YouTube" Telling or Selling You Something?" BMJ (2007). 5 June 2008 <http://tobaccocontrol.bmj.com/cgi/content/full/16/3/207>.
2. Prescott, Leann. Hitwise US Consumer Generated Media Report. Hitwise. New York, 2006. 1-20. 5 June 2008 <http://www.rmgconnectpov.com/sharedimages/news/HitwiseUSConsumerGeneratedMediaReport%20-%2
3. Blackshaw, Pete. "The Pocket Guide to Consumer-Generated Media." Clickz (2005). 5 June 2008 <http://www.clickz.com/showPage.html?page=3515576>.
4. "User-Generated Content." Wikipedia. 22 May 2008. 5 June 2008 <http://en.wikipedia.org/wiki/User-generated_content>.

5. Moskowitz, Robert. "Are Consumer-Generated Ads Here to Stay?" IMedia Connection. 10 May 2006. 5 June 2008 <http://www.imediaconnection.com/content/9521.asp>.

 Consumers generated what?

            As the name simply suggests Consumer Generated Media (CGM) is simply a consumer’s tool to share and create their own “production”. To make this easier to understand some examples of CGM are blogs, video hosting websites, social networks etc. Simply anywhere that allows its users the freedom of coming up with just whatever. Well of course there are some restrictions in certain branches of the CGM, take YouTube for example, there’s a line drawn to avoid excessive adult material being posted by the users and that is just in the name of being able to have the website suitable for all age groups possible so that they can get more hits. “Consumer generated content plays a huge part in shaping today’s cultural DNA. It’s practically impossible not to brush up against some form of content the average Joe or Jane has created on any given day. In fact, if we stopped to really think about how much time we spend wading through user generated content as we navigate our daily lives, I think we would be stunned by the amount of stuff we consume and work that we’ve authored (think blogging, pod casting, photo sharing, video sharing, music sharing, social networking, co-creating, content mashing, etcetera). It’s a democratic landscape that gives us online tools to create content that satisfies our desire to express ourselves.”(Winn, 2007) So it’s not hard to see how widespread and important CGM is in today’s world and how almost unavoidable it is.

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You, CGM and advertising.

            Surely it has crossed your mind by now how we can take advantage of such medium as advertisers. To start off this piece of Holly Winter’s article gives us an idea on the possibilities CGM presents “There is clearly a large pool of would-be authors, journalists, musicians, photographers and playwrights who have failed to find an outlet through the traditional media value chains,” said Adam Daum, research vice president at Gartner.   “They are now being empowered by access to low-cost hardware, software, and viral marketing and distribution channels. The nature of the new medium gives them the power to attract audiences outside of the traditional entertainment channels.” (Winter, 2007). It’s easy, cheap and usually effortless to produce and broadcast in the medium. You can start you own blog easily and write about whatever you desire and if you’ve got that spark soon you become the biggest thing on web where people want more and more of whatever you have to say or you can be the video star of YouTube and get your productions praised by millions from all around the world.

\Let’s start with the good things that CGM has to offer for advertising. First of all the medium being created by anyone and everyone, as the quote from Winter suggests there are many would-be talents lurking around in the web. Now that’s good for both advertising agencies who are people who didn’t have the chance to reach out to big companies or had no idea that they held the talent for creating things that could influence masses. Not only that blogs and video sharing sites offer users to write and show their audience what they think and feel about products they use and maybe recommend that the viewers look into getting one for themselves. I think the fact that these things are brought to us by regular people just like us and not professional advertisers it feels more reliable and personal so we can easily take their word for it. Websites like Consumer Reports that allow us to look what others have said about the product that we’re planning on buying and influence our decision on whether we buy it or not. If you remember the Coke & Mentos videos that got viral all of a sudden you would not be surprised that CGM can create such accidental advertisements too. “As for what the two brands did with Eepybird, Mentos launched a promotion on YouTube by mid-July that asked for consumers to send in their videos of Diet Coke/Mentos explosions. Coke had its first meeting with Eepybird in August, when the Atlanta beverage giant, along with Google, approached Grobe and Voltz about being "the first viral video producers in [Google's] new sponsored ad program," Grobe recounts. The idea for the duo to serve as standard bearers for Coke's "Poetry in Motion" consumer-submitted video contest at Coke.com, part of "The Coke Show," came out of those discussions.But over the long-term, the take-away from Coke's and Mentos' embrace of Eepybird probably should be less about who got there first than as a sign of things to come.For Coke, its partnership with Eepybird is, in fact, just part of an overall commitment to embrace consumer-generated content. Now, the company is looking "to blow out that strategy into other areas" such as music and photos, says Michael Donnelly, director of global interactive marketing at Coca-Cola. Over the holidays, the company sponsored the Holiday Wishcast with YouTube, where people uploaded holiday greetings to share. One clip on the Wishcast site involves two members of indie band Death Cab for Cutie musing about what it would be like to spend New Year's Eve with former Van Halen lead singer Sammy Hagar. While one can wonder what something like that has to do with soda, such arguments no longer seem to be the point. The revolution continues.”(Taylor, 2007).

Accidental occurrences that benefit the advertising sector such as these are good sides of the CGM. Now the bad and the ugly; I’ve stumbled upon an article online regarding U-Haul. The author was furious about this twisted way of advertising it seemed. So the story is that the author was searching for U-Haul on Google. Then he realized that on the first page of the results were gripe sites, domain names such as dontuseuhaul.com or uhaul-sucks.com. When he entered multiple sites such as these he realized that on the side of each gripe website there was a banner for Budget truck rental that lead on the same webpage. Budget is a direct competitor of U-Haul and he author thought it was infuriating and so unfair to pull such a cheap trick. “I believe we are entering a very dark period of the web, folks. The vitriol and deceit of political players and media in the U.S. is trickling down to the culture of business. In my work I have identified and helped prosecute businesses that fabricate consumer generated media and promote malicious falsehoods against competitors in the guise of an abused customer or industry expert. Some of them are dumb enough to publish links to their competing sites.”(Crandall, 2007). The downside of CGM is clear, dirty, malicious advertising and cheap tricks to get ahead of the competition. Now since it’s a pretty free medium for now it may seem that there’s not much wrong with using what the creators of the net has given us if such things were to spread it would lead on to such a heated up war between competing brands that it would be really difficult to know who to trust and what webpages to refer to.

The Tube is a lie.

            I have mentioned before how certain viral video hits are suitable for advertising in CGMs. YouTube would be a prime example. I think there are a few ways that the video sharing websites can profit the advertising nation. One is of course with the help of its popularity. YouTube for instance is the top choice among users for video searching and hosting. It would only be logical for advertisers to take advantage of the fact that the site is so popular that they join the community too. Sometimes this can be done in secret if the brand wants to be sneaky and look more like one of the members of the YouTube community or straight up let the viewers know who they are and what they are there for. The rest of the plan is easy, they create ads for YouTube that they will host and people can watch. Now there is something off with that. Because unless the ads are done in a brand new way it will be the same thing as watching ads on TV unless this time you have the choice to hit play or just skip the ad.

So I think the second form of possible advertising through such websites is more fun and contains the ultimate element of surprise. Because sometimes the very creators of the videos are not aware how big of a success they have achieved. One website talks about Daft Hands a user created video based on the song by Daft Punk. Now this video had over 18 million views alone not counting the similar and related videos people created after they’ve seen the original which also adds up to another 11 million views. Considering that this is something someone made for their amusement and wanted to share with the YouTube community. Maybe we’re not aware but being exposed to the Daft Punk song over and over again will make some wonder what other songs they have or look into finding more about the band. Voila, we got us some advertising and I doubt Daft Punk or any ad agency even had to pay for it. A-ha! Now sure no

one having to pay any money to view or make and submit the videos that soon become advertising without them even knowing it is not bad, for us the consumer at least. But how about the ad agencies that are having their jobs done for them by bunch of teenagers and no one even gets paid for it? I’m sure that will have some sort of an effect on the advertising market regarding the viral marketing through these video sharing websites. “No one likes watching commercials and yet it’s commercial advertisers that provide the money to sustain much of our existing forms of media. YouTube may be a poster child of Web 2.0 and user generated content, but economics can not be avoided. Google still has a long way to go in recouping its 1.5 billion dollars. The new advertising service might bring is some extra revenue, but I just can’t see it being a massive winner. “(Riley, 2007). I think those are a few things to consider regarding this new form of advertising medium that is available.

WORKS CITED

Micek, P. J.(2005). Consumer Generated Media: What Small Business Owners Need to Learn From Big Corporations. Retrieved June 5, 2008 from, http://www.businessownerscoachingclub.com/businessownersblog/?p=65

Winn, T.(2007). The future of consumer generated advertising. Retrieved June 5, 2008 from, http://agencyspy.wordpress.com/2007/08/13/the-future-of-consumer-generated-advertising/

Winter, H.(2007). Traditional media under threat as consumer generated media reaches mass market. Retrieved June 5, 2008 from, http://www.gartner.com/it/page.jsp?id=526123

Crandall, T.(2007). A consumer generated media nightmare: When a gripe site is manipulated by a competitor. Retrieved June 5, 2008 from, http://www.semreportcard.com/a-consumer-generated-media-nightmare-when-a-gripe-site-is-manipulated-by-a-competitor/

Mandese, J.(2005). The rise of the consumer generated media machine. Retrieved June 5, 2008 from, http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=28733

Taylor, C. P.(2007). Best consumer generated media. MediaWeek, 47, 420-426.

Riley, D.(2007). YouTube video advertising: No pre-roll, no context. Retrieved June 5, 2008 from, http://www.techcrunch.com/2007/05/11/youtube-video-advertising-no-pre-roll-no-context/

Corsaro, M.(2008). YouTube viral advertising: Harder, better, faster, stronger. Retrieved June 5, 2008 from, http://lab.77agency.com/video-advertising/youtube-viral-advertising-harder-better-faster-stronger-452/