Forums: Discussions for entrepreneurs and small business.

Alrighty, I had an idea tonight for a business. With all the craze about
user generated content, from YouTube to Wikipedia to the blogosphere
and Time Magazine naming "you" as the person of the year along with
Google pioneering a new model of advertising for the internet, it got me
thinking.

What about user generated advertising or better put, customer-generated
advertising? I`m not talking about companies harnessing word-of-mouth
marketing. I`m talking about customers actually thinking up, writing and
designing ad campaigns for the companies and products they love.

Who better to know how to speak to a market than the market itself?

What if there were a company that matched creative, loyal customers with
advertisers? What if advertising budgets went not to traditional ad
agencies but to this new company who also shared dollars with the
customers who made the ads?

Here`s how I see it. (I`m going to use the iPod as an example product.)
The business is web-based. Apple registers the iPod on the site with
some notes about their market and direction, etc. The public gets to
dream up some new iPod ads and each product gets a forum for
discussion. After a few ideas are formed, they can be written up and put
through a rating or voting process. When a winner is decided, people can
join in the process of executing the ad.

I assume there would be a project leader (maybe the person who`s idea it
was) and others can sign up as copywriters, designers, coders, etc. Once
again, people can vote on taglines, sketches, etc. The whole process
would revolve around ratings or votes to get the best content to the finish
line. There could even be set schedules to keep things moving. A lot of
these details of execution would really need to be figured out.

I imagine this being strictly web-based ads to start but the idea is not
limited to the internet. What if iPod fanatics could create the next iPod TV
commercials or radio spots? Everyone from the actors, voice artists,
videographers, etc. would get a piece of the money pie, as well as the
ones who submitted the idea in the first place. There would have to be
some sort of system for deciding who gets paid what.

Coke held a contest for a customer-generated commercial not too long
ago. And didn`t someone do it for a Superbowl ad? Well, let`s make a
business out of this concept.

So here`s what I think should happen. First, let`s brainstorm and debate
the hell out of this idea. Do you think it is viable? How do you think it
can work? What else needs to be thought of? I fully realize I do not have
a functioning business idea here but I think the core concept is good
enough to be developed. I would also like to harness the talent and
expertise of my fellow SuN members to actually create this business. I
want you on the team!

Let`s be the next player to shake up the advertising industry!

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Home Sweetest Home - Poster-Style Home Portraits
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Steve Lowtwa

I must say - I like the idea. Go to the masses!

What do you envision the revenue model to be?

Duke

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Okay, I`m just brainstorming here. Revenue model... hmm...

Let`s say its a pay per click type of thing. The advertiser pays us a certain
amount per click. This is common in web advertising right? I know it is a
more complicated model but I have little understanding of how it works.
In basic form I would think that the advertisers pay for traffic generated
(the clicks). That revenue would be split between our company and those
involved in creating the ads.

Or...

Let`s say it`s a fee based system. The advertiser has a budget of which
they disclose when they register the product for our advertising. Again
that money is shared with the company and the ad creators.

Or...

Maybe it is a combination of both. This is probably the best model. The
advertiser pays something upfront to us and those that created the ads,
plus royalties based on clicks. Is this making sense?

Companies have advertising/marketing budgets. They can pay for the
design of the ad campaign plus for the traffic that it generates. I work in
a similar way as a poster artist. I charge a fee for the design of a poster
plus royalties of sales. It works in a creative business. The company we
create would have a certain amount of employees that need to get paid.
But then the public involved in the projects are like "independent
contractors" that also get paid.

As a new kind of ad agency, our creative department is "the people". We
build a system to usher those people through the creative ad-making
process and pay them based on their involvement. This is another issue
to debate. How do we figure out who gets what? Maybe there is a point
system that is attached to percentages. People gain points based on their
contributions to the project. Or something like that.

Anybody have any ideas on refining this revenue model?

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Home Sweetest Home - Poster-Style Home Portraits
Zingerding - the Internet`s Funny Pages (coming soon!)

Steve Lowtwa

Very cool idea...where to start?

Thinking http://www.sitepoint.com has the right forum, solicit some youtubers?

Present demo to potential advertiser?

Alright, here`s what I don`t like about what Doritos did for the Superbowl ad (see youtube link on post above).  Nor do I like SitePoint which I challenged in a different thread here on SuN.  They are contests for finished work.  "Put a lot of effort into creating something and we (or you) pick the winner.  Even though you did a lot of work, you may not get paid."  This is highly-involved spec work which I believe unethical - and this thread is not about debating that.

Now my consumer-generated advertising concept does involve a small amount of spec work but the idea is to eliminate that as much as possible.  Every stage of the process will be voted upon by the people.  This way, nobody is taking their ideas to completion just to find out they didn`t make it.  It will work more like a real company does, with input along the entire process, weeding out the bad and pushing the good through.  There`s a difference between sketching out a concept and creating the final piece.  The sketch is not such a loss if it doesn`t make the cut.

And yes YouTube and other networks would be a great place to solicit for creative people.  A demo could be made to present to potential advertisers.

But let me ask the community, how do we find those advertisers?




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Home Sweetest Home - Poster-Style Home Portraits
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Steve Lowtwa

advertisers would look for,

• great creative/content/execution
• enough control that they could be sure their image/messaging are well served
  
• buzz opportunities associated with the novelty of this concept

i don`t think it would be a hard sell if all three of these were addressed. (and we`ve got some initial relationships that could kickstart the momentum on this... happy to facilitate.


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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

I see what you`re saying Steve, but also like youtube content providers, who create laborous features for "no one in particular" but a chance to have their work seen, we may get some great finished products up front, however, if we are moderating the content then I see your point completely as why do all that work if it`ll never see the light of day.

Rich has nailed the three keys down for us here, and offered to help!

Should we be examining the SuN version of this idea from CAZTV? How is that coming along I wonder?

 

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Rich, thanks for spelling out those key points to help focus the concept.

strategydude:  Unfortunately we may be left with the "best of the lot" depending on the capabilities of those contributing.

It is a concern that the quality of finished work may not be up to par with what the advertiser is looking for.  What can we do to eliminate/minimize that?


I think the intent would be a finished product but if the advertiser were only interested in using the service for "focus group creative" as you put it, then that is their choice.  They would still be financially responsible for the work created.  That is my initial thought.

Then again, I think the entire concept would be most successful if "the people" knew they were making something that would actually be used.  Who would want to contribute to an ad campaign, even if they are paid, just to see it redone or revised by BigBucks Ad Agency?


I love those kinds of questions.  I`ve thought about this kind of "line" before with my current startup web business.  I am creating a site for comic strips, for anyone to upload their strips.  What if the syndicates wanted to submit professional newspaper strips?  In the end, I believe in a free open market.  Let the big guys compete with the little guys so that there is no big or little.

In a concept like this for advertising, the ideas of any ad firm are just as valid as the two nerds in the basement.  The forum we create for the advancement of ideas through the system would be immune to whether the idea comes from an experienced ad firm with numerous resources or not.

All this relates to the advertiser clientele.  What kinds of companies are most likely to sign onto a service like this?  Would companies like Nike or Apple actually take the risk of having non-pro ad campaigns?  I think it is geared toward smaller companies looking for alternatives.  Who would use this service?  Why would they do it over hiring an ad firm, big or small?  Why would they do it over doing it themselves?  Or hiring a friend?



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Home Sweetest Home - Poster-Style Home Portraits
Zingerding - the Internet`s Funny Pages (coming soon!)

Steve Lowtwa

CampSteve: It is a concern that the quality of finished work may not be up to par with what the advertiser is looking for.  What can we do to eliminate/minimize that?

This was the thought that led me to my other question...

Are the contributors to this process truly going to be a couple of guys brainstorming in their basement, or, an open door for every small advertising firm who would love the opportunity to show their stuff to a brand name company?

The quality of the work submitted will obviously be a reflection of the capabilities, or more likely, the resources of those participating. In my opinion, I believe that in order to ultimately create the kind of ongoing buzz and viral marketing initiatives that will serve to sustain our model, that it will become necessary to exclude professional firms from participating. Opening up the door to professional organizations may end up contradicting our model of true "customer-generated advertising". If users feel that others have an unfair advantage and that not everyone is on the same playing field, then there is the distinct possibility that the buzz may turn negative and the interest in our format my dwindle. This may also cloud our value proposition to potential clients/advertisers. Are "the people" creating these ads or are professional firms? If so, we already use a professional firm.

The grass-roots, home grown, organic advertising approach that we hope to cultivate by giving the public the opportunity to step to the table, in my opinion would far outweigh the possible negative that might arise by not extending participation to professional organizations. In fact, I believe that if we stated that right up front, that professional firms were not allowed to participate, that it would serve to create an even stronger buzz in the market by making everyone feel that they actually have a shot.

CampSteve: All this relates to the advertiser clientele.  What kinds of companies are most likely to sign onto a service like this?  Would companies like Nike or Apple actually take the risk of having non-pro ad campaigns?  I think it is geared toward smaller companies looking for alternatives.  Who would use this service?  Why would they do it over hiring an ad firm, big or small?  Why would they do it over doing it themselves?  Or hiring a friend?

This one`s easy -

1. Novelty
2. Fresh
3. Public perception and acceptance
4. Good press/PR
5. Potential for great marketing spin.

Our model caters to the primal ingredient of B2C - GIVE THE PUBLIC WHAT THEY WANT. As far as what companies are more likely to sign on for a service like this? Well my friend, the sale starts in the mind of the salesman. I believe that if presented correctly that the Nike`s and Apple`s of the world would die for something like this, if not kill each other for the opportunity to be first in line. It is WE who will set the precedent and decide who our clientele will be, and then WE will go out and get that clientele. Why is it do you think that Hill Holiday and JWT have such a distinguished and impressive clientele? Because that`s who they choose to go after and cater to. For us, that decision will have to be made.


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