Pulling Your Own Strings (Or Fred Wilson’s Idea To Destroy YouTube)

MySpace creating something so bands can sell MP3s will have no impact.

Bands are already selling there MP3s on MySpace.

But at least they are offering tools.

It’s a smarter idea than Fred Wilson’s.

Putting a pre-roll on YouTube would kill it.

Part of the problem with the way many smart people are thinking is that it’s old.

They are trying to scale things like advertising the same way they always have.

The problem is that advertising is way behind the evolutionary curve.

Listen carefully.

Consumers want control.

They do not want to be interrupted. I don’t care if it’s a ten second pre-roll or an ad at the end.

It’s not that we hate advertising.

We just want to pull our own strings.

The only way advertising is going to be successful in the future is if it lets go.

It’s common knowledge that the best advertising is word of mouth. That’s advertising that has been ‘let go’. The advertiser has no control of it.

20 seconds of thinking about it and you realize that YouTube is in a great position to monetize advertising which consumers control.

So is MySpace.

But as an advertiser you have to kinda think backwards and smaller.

I have said before, and will say it again. The problem with monetizing Web 2.0 enterprises is not a business model problem.

It’s a lack of forward thinking advertising agencies and advertisers.

They think the only way to get attention is to slap ads on stuff.

And they even have smart folks like Fred (and you) believing that.

We live in an age of institutional collapse.

You see it happening all around you.

The idea that the way to sell to large groups is the same way we did it 30 years ago will only get you one thing.

Hit by a falling rock.

Explore posts in the same categories: advertising, blog networks, Fred Wilson, MP3, MySpace, Web 2.0, YouTube

14 Comments on “Pulling Your Own Strings (Or Fred Wilson’s Idea To Destroy YouTube)”

  1. nate archer Says:

    did you hear that??

    A click!

    Thanks Char, you continue to provide mind-blowing insights.

  2. Clyde Smith Says:

    I think the MP3 stores at Myspace are exactly the kind of thing they should be doing and they will have an impact. They’ve lost track catering to companies that want to flood MySpace with fake profiles and “safe” channels. Since the big labels will avoid this solution because it lacks DRM, this will end up being a service for their indie user base.

    I understand where you’re coming from about advertisers but from YouTube’s perspective, they’ll have to put ads in somehow or shut down. Cause you don’t have a solution for that scale of operation, do you?

    The endroll ads on Revver are quite easy to handle, much better than the junk inventory banners on MySpace. They won’t get in people’s way and I doubt would have serious negative repercussions for YouTube users.

    Speaking of the way they did things 30 years ago, when did the idea of honoring your competitor’s coupons come into being? I hear that still works.

  3. Pre rolls are the surest way to make sure your audience and customer hates you and will never come back.

    What people don’t understand is that the days of traditional advertising are over.

    You now need to EARN the right to advertise to your customer. Peoples attention is a commodity. They do not give it away for free.

  4. chartreuse Says:

    Actually Clyde, I mentioned the answer in the post. Not overtly but I pointed you in the direction I think you can scale something like advertising on YouTube.

    Let me tell you what MySpace is doing right. They are not providing solutions. They are providing tools so bands can build their own soltions. And that is very much the key to 21st Century selling.

    By the way, how have you been? Haven’t seen you here in a while. You were missed.

  5. i think affiliate marketing and product placement are fine and a good answer for the creative and as a partner to good content.

  6. chartreuse Says:

    For the record, I agree.
    But that’s why you’re my wealth advisor!

  7. I think I”m happy that Char is allowing full posts in his RSS feed now. And you see: we’ll still come by to comment. Only now we’ll do it in a happier frame of mind…

  8. chartreuse Says:

    Actually dearest, I have always allowed full feeds. It’s a WordPress issue. Not a Chartreuse issue.

    But I am not a real fan of feeds.

    I think people appreciate more the things they work for. 🙂

  9. Clyde Smith Says:

    I’ve been good, Char, thanks for asking. I actually am just behind on checking things out and, believe it or not, I don’t always have something to say!

    I certainly agree that it’s the providing tools part of the MP3 stores that interest me. And they could do so much more in that direction.

    So I have to work for the YouTube answer?

    I can’t wait to appreciate it.

  10. vanesica Says:

    I have been coming here reading for quite some time. Lately not leaving any comments, just reading. And then I read a comment that you actually do have a feed? Where might that feed be located chartreuse?

    Forward thinnking advertising. Tag your youtube flick with a product or service that was mentioned or inadvertantly seen in the footage. You could tag it “pepsi” even. What if advertisers began hunting out tags and offering to pay the videographer just to keep it as is. This advertiser could start his/her own cooporate blog on pepsi or instance. Every time a video loaded up that was tagged pepsi the advertiser could blog it offering money in exchange. As the views increase the advertiser pays more per view. Maybe a set rate… The videographer is happy and so is the advertiser and neither of them has to adjust any of the content. A pepsi channel?

    Your wealth advisor is smart.

    I like the divorce papers photo. Been there done that 5 years ago.

  11. DudeAsInCool Says:

    The best scenario would be ancillary ‘affiliate marketing and product placement’ that keys in on the individual user’s tastes instead of key words that may or may not.

  12. Adam Elend Says:

    how come nobody even mentions embedded advertising in these discussions?

  13. Paul McEnany Says:

    Well, at least CBS is getting it right with their “eggvertising.” 🙂

    There’s this constant conversation about how much advertising consumers will put up with, or, if they’d rather pay for content or get the content for free with ads, like this is a zero-sum, either/or game.

    I have trouble believing that with all these smart people out there, that there is no better way, that we’re forced into the decision of spam or charge. The old way is just so engrained that it’s hard to think of any other way.

    Maybe someone should point out that while they may put up with advertising, it still doesn’t guarantee that they’ll enjoy it, pay attention to it, or thank you for it afterwards. We should be finding ways to lift up our customers, not steal any time extra time that they’ll begrudgingly endure.

  14. DudeAsInCool Says:

    “how come nobody even mentions embedded advertising in these discussions?”

    Hey Adam

    I did in my comment right above you

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