April 26, 2007

live from ad-tech day two (morning keynote 9:30am PT)


"Dreaming of Disruption"

Speaker: David Clark, Exec. VP Advertising, Joost

Owned by the founder of Kazaa - taking on the music industry
Owned by the founder of Skype - taking on the telephone industry
Now Joost is taking on television

Dick Fasbery - the inventor of the Fasbery flop. He tried to do the high jump backward and changed Olympics forever.

He says that TV should not change that much - it should remain the same. Joost says TV is good and that the internet shouldn't kill TV. The networks have responded to competition by crafting well told cinematic stories. TV is getting better he says.

He says it is because storytelling that these networks are surviving and thriving. Storytelling matters, brand matters, programing matters.

Joost is not betting against TV.

But the internet has what TV lacks - community, measurability, etc. He says we are seeing the merging of the two worlds - online and TV.

When David was at MTV he said that people wanted to watch and be involved in a community.

Video will always be the foundation of content. With Joost anyone can set up a channel to broadcast to the world.

JOEL'S QUESTION: this sounds like 1995 when anyone could make a website. What can we learn from the 90's that we can apply to this new opportunity?

Joost has many channels that is unique and separate from what you can find on TV. Joost has signed deals with big media companies. He says that talent and storytelling skills comes from the big companies. He says online video will help big media companies more than others.

He says we will see new types of entertainment centered around this new media. Audience interaction and choice will reign. Smaller and loyal audiences will spring up around certain type of shows and channels. Channels and play lists will be organized by me, my friends, or the wisdom of the crowd.

He says we should look through the consumer's eyes - not big media's eyes to see how things will take shape.

Joost will open the platform to all very soon. He says that Joost feels a lot like TV. It is an instant full on TV like experience - but with control and interaction. It is a lean back or a lean forward experience - your choice.

It took 50 years to create TV 1.0 - TV 2.0 won't happen overnight. The thing that is holding back TV 2.0 is an effective ad model. The biggest fact is that the consumer is totally in control.

David says that this is the biggest deal. It effects the ad industry the most. As advertisers we are not used to having the consumer in control. As advertisers we need to re-think about what this means. Advertising is not a product and it is not entertainment. He says that it is supposed to snatch you away and pitch you something.

As an advertiser where do we place our bets - he asks. In the 1970's Scope was able to have a single message on TV and America had to watch. But entertainment is fragmented. He likens this to all of us trying to stand up right now and pitch him on a 30 second business idea. David says that this is the marketing tactics of the day - but they were designed for the past. They are tired old models. We haven't developed new ad models fast enough and we are relying on the success of the past.

Three things that Joost uses

1. Interact
2. Measure
3. Target

He says that he doesn't think the 30 second spot is dead. He says that it will still work as long as there is only one spot that has prime space in the content. He thinks this will work.

David says that Joost takes an open source approach to Joost. He feels that Joost being built on the Firefox browser will open itself up to that community.

David says that Joost is open to any type of company that would like to help them figure out a new ad model. He wants start-ups, old companies, etc. He claims he wants to work with content creators and aggregators.

35-40% of ad dollars go into TV. But the internet video realm will grow fast and strong over the next few years.

David says that there will be some disruptive advertising. Mid-roll, pre-roll, post-roll.

David says that he loves YouTube. Joost is much more controlled and is more for content creators - not user gen content. He says there is a great opportunity for content that isn't short clips of user gen content.

Question from audience: What about big screens? Are people going to want to watch TV on their computer?

David says that TVs will be able to play content on big screens eventually. He says that laptops are already media devices and devices are converging. Joost says that everything is available on the network. The user can create their own playlists and content line up.

Question about content owners and revenue sharing...

David answers that the content owners can sell their own ads or use the Joost ad sales team. If they sell their own ads they will make more money.

Question - do you see advertisers being content producers and owning their own channel.

David says that advertisers are great storytellers and he sees them having the possibility to create their own content.

Great talk.

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