Embargoes, Corporate Blogs and Getting a Story Out

Over the past few days, the way the news is done (as told by blogs) has been challenged once again. Mike Arrington, in a moment I can only assume was brought on in frustration by another mismanaged embargoed story, declared unilaterally that TechCrunch would agree to any embargo and proceed to break it thereafter.

Marshall Kirkpatrick came out on the other side re-assuring the public that Read Write Web would honor embargoes.

This morning, Jeremiah Owyang, who I skewered recently over sponsored post opinions, started asking some great questions around the communications of “hot” stories – that is, stories that companies deem newsworthy and seek coverage from bloggers on.

Jeremiah wonders why companies don’t disseminate this information themselves? The answer is: They do. Everyday, thousands of press releases are sent out, most of which fall on deaf ears.

Companies, realizing the difficulty in communicating online in an internet age, have turned to blogs as things they must have. The problem, however, is that traditional communication tactics have been applied to a corporate blogging strategy (you do know the difference between tactics and strategy, right?).

In other words, most corporate blogs are boring. Nobody reads them. Nobody cares. And so, most companies handling their own “news” stories will fall on deaf ears. It’s a numbers game. Get the story to the top blogs in the space that cover the genre of product or service, and you get the most eyeballs. Get more eyeballs, the percentage of sales go up.

The Corporate blogs that are effective are the blogs that participate in the larger community. They not only promote their own products, but they have a distinct outwardly looking mentality that helps their readers be better people, business people, marketers, wives, husbands, internet citizen, etc. They enable community, which benefits their own business.

Most corporate blogs have not figured this out. Instead, they are used primarily to shill their own products and services and let’s be honest, everyone hates getting spammed. Thus, the corporate blogs are not read and the companies are left relying on bloggers such as Mike Arrington to get their messages out.

In an ideal world, Jeremiah’s concept would be best. Businesses would have respected and competent media arms that could disseminate and challenge the community and cause effective bounce in their online presence.

If you’re a corporate blogger, I’d be particularly interested in your thoughts on this.

Welcome to the Machine

Welcome my son, welcome to the machine.
Where have you been?
It’s alright we know where you’ve been.
You’ve been in the pipeline, filling in time,
Provided with toys and ‘Scouting for Boys’.
You bought a guitar to punish your ma,
And you didn’t like school, and you
know you’re nobody’s fool,
So welcome to the machine.

Welcome my son, welcome to the machine.
What did you dream?
It’s alright we told you what to dream.
You dreamed of a big star,
He played a mean guitar,
He always ate in the Steak Bar.
He loved to drive in his Jaguar.
So welcome to the Machine.

Remember that song? From the album Wish You Were Here, Pink Floyd in an almost prophetic motion saw a generational change coming years before it actually arrived. The song was widely believed to be about the music industry and the “slurping” of fresh blood artists into the controlling depths of the recording industry, but I see something far more nefarious and relevant to today in light of the economy and business.

Photo by <a href="http://flickr.com/photos/tonivc/382150181/">ToniVC</a>
Photo by ToniVC

In fact, we are so out of our league with the concept of open innovation in a web environment that the generational, societal and economic corrections are about to kick in. The economics are already kicking in with the entire marketplace shrinking, if you look at market conditions, 50% in the last year.

I asked a VC a few days ago what he was investing in in a down economy and his answers indicate low-risk investments – that is, investments that are cash flow positive with an existing customer base. Yeah, not much risk and certainly different than the VC market we’ve been used to. If this is the mindset that is prevalent, there will be fewer innovators as less cash is available to be had. Fewer, or smaller innovations. Welcome to the Machine!

Generational corrections occur when a generational mindset changes. While my friend, Jessie Newburn is the resident generational expert in my circle of influencers, I believe she would point out that the individualistic Generation X that helped create the internet by challenging the established norms of the 1970s and 80, and who possessed the innovative prowess to create two generations of web companies is being replaced by a generation that is more likely to band together and hunker down for the nuclear winter. Hibernation, in a way. Those corrections are beginning to occur, I believe, as consolidations will likely become the name of the game. Welcome to the Machine!

Generational corrections beget societal corrections. Societal corrections merely reflect the mood of the workforce, the innovators and the money movers. When the finances dry up, the companies move into a mode of slow burn/slow growth as opposed to high burn/high growth, then business decisions are made safely. The Machine is safe. It is robotic and automated, programmed with computer-like precision. The Machine makes few (if any) mistakes, yet it is uncreative. It lacks pop and sizzle that innovators provide. When the society corrects itself away from innovation, it becomes precise and routine, but loses the juice that can be risky but productive. Welcome to the Machine!

If you’ve read this far and feel like I desire the demise of innovation, you have read me wrong. I do not. However, there are corrections happening that could last a long time (far beyond the 18 months experts think the economy will take to come back). It is a generational impact that could delay a proverbial Web 3.0 for 10 years or more.

With the trends of the incoming Presidential administration, my feeling is that the next generation of innovation could occur within the public sector itself, but won’t have the exposure or sexiness of that which was considered “hot innovation” in the last 20 years. Less private sector bling. More public sector growth.

What are your thoughts?

Social Media Quagmire

What happens when you build your business around a technology that disappears overnight? What happens when you build a client base, a pool of prospective clients or an otherwise niche demographic that is dependent on some other third party?

Many times it works out. Effective consultants have built their business on less than reliable third party access. However, there is an inherent risk that your way of life can change without any influence from you.

While Pownce has announced they are closing their doors (And we don’t really believe anyone outside of the Pownce four-some have built any kind of living around the microblogging service), I wonder what it would do to businesses built on the premise of Pownce availability?

The same goes for Twitter, where people have made an entire consultation around the use of Twitter. But what happens when Twitter goes away (and Twitter will go away at some point, undeniably without consultation with these consultants building their business on its existence)?

What happens when you as a consultant are hired to provide surefire, highly effective social media routines that will have a 95% possibility for 3-6 month positive effect on the growth and you recommend Twitter? And Twitter becomes 80% unreliable for an entire month, as it did in June and July?

What happens in a dying economy when companies want real returns and all you can give them is conversations with potential clients, and you have no solid way to convert those conversations into real customers?

Food for thought…