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PowerPoint Presentation:

What Drives the Web 2.0 World: Search, Media, and Conversations John Battelle UCB, Marti Hearst, Presiding

Who Is This Guy?:

Who Is This Guy?

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Version 1.0 of the Internet: Long on vision, short on execution, shorter on profits; market & tech immature Version 2.0: Long on execution, long on profits, even longer on vision; platform is maturing Web 2.0

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The rise of the web as a platform… …based on inexpensive communications and software and mass adoption… …allowed for highly iterative, lightweight, innovative companies…. …to leverage the architecture of participation… …and drive a new kind of commerce based on conversation. Web 2.0 (in one slide) Linux

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Mid-Late 90s - we thought it was a battle for the window into computing : Netscape v. MSFT. Instead, it became about the content and services , not the window Web itself became a robust development platform Sites also became platforms: Amazon, Google, Yahoo!, eBay, etc And entrepreneurs began to build on the platforms, creating new approaches to established markets - like software, media, retail…. The Rise of Web 2.0

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To create IT-driven businesses that work… You need a solid ecosystem in which to develop IE Windows, Linux The Web now has such an ecosystem Sites built on this platform embrace the open: data, access, portability And they are headed your way, some are already there And the best sites are iterative…. Web 2.0 Principles: THE WEB IS A PLATFORM

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Leverage user-generated content & the force of many to create advantage and build network effects The remix culture: the best sites are mixes of other sites’ APIs, data feeds: Prosumer rising Linux Web 2.0 Principles: THE ARCHITECTURE OF PARTICIPATION

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The Web as Platform plus AoP = new generation of “lightweight” competitors Google/Yahoo News & Craigslist/Blogs v. Newspapers Tivo/NetFlix/VideoIP v. Comcast/cable Federated Media v. Primedia Web 2.0 Principles: LIGHTWEIGHT BUSINESS MODELS

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Our culture’s point of inquiry, the spade with which we turn the web’s soil The axis of a business transition from Packaged Goods to Conversational models A conversational interface to technology and culture Web 2.0 Principles: SEARCH RULES “Questions are the breath of life for a conversation.” -James Nathan Miller

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Smart companies see an opportunity online… To provide a platform that allows them to have a conversation with their customers… Through services built around their core brand and business promise. It’s an old lesson: transportation, not trains… The Conversation Economy The Conversation Economy

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10 100 1,000 1970 1980 1990 Participants (mm) 2000 2010 Industry size ($bb) 50 500 5,000 Talk with Back-Office Talk between Front and Back Office Talk with Customers (Web 2.0…) The Conversation Economy: The Third Wave of Interface Culture Source: US Gov, IDC

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Search as Interface: Remember DOS?

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Search as Interface: Remember DOS Results?

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After DOS…..

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Search as Interface: Search 1.0….

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Search as Interface: Search 1.0’s Results….

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The Conversational Interface: What Might Be Next? “Driving through the web…” Taking the interface for granted... A call and response model The web re-builds itself around your intent… Just as it does now at a search service It’s interface as conversation And it means big shifts in how businesses operate

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New Bottles, Old Wine The link between search, mobile, and an insatiable Index…. Search as Interface: One Scenario

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Ask, Google, Microsoft, Yahoo all have moved toward a conversational interface… Search as Interface: It’s Happening…

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Old Homepage for Lancer Evo

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Search Loves Conversations

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Old Homepage for American Express Plum Card

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New Homepage for American Express Plum Card

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The Rise of Conversational Media Search loves conversations. The rise of a search/conversation-driven interface to the online world… …means conversational sites are taking off, and becoming the primary source of information and connection on the web… …the era of Conversational Media is upon us…

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What Is Conversational Media? Packaged Goods Media Conversational Media Product driven Service driven Commodity platform Highly produced platform Highly produced content Best first draft Write once, read many Write once, listen, write again Controlled/Dictated Free flowing, conversational Distribution, capital driven model Open model Consumption model Engagement model

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The Rise of Conversational Media: 2005-6

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Top Conversational Media Sites 2007: New comScore Data ©2007 comScore, Inc 1 2 3 4 5 6 7 8 9 10

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So How Does Conversational Media Make Money? Search…. Social Networks Facebook Myspace et al…

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The Rise of Conversational Marketing If we believe that Conversational Media is real… …and represents a new form of exchange among its participants… …then it only follows that marketing in Conversational Media means working in a different ecology… …one we’re just adapting to. We’re in the “Fish with Feet” phase… First step, walking. Next step, Facebook…

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It’s an old saw, but ever more true… The consumer is now in control... So how might this apply? Piece o Cake - turn your business over to your customers…. ….and let them interact, build and talk about your brand. Some examples from FM’s work with brands… How Business Evolves: The Consumer in Control

Case study: Cisco:

Cisco wanted to drive discussion of the idea “The Human Network” Worked with FM authors End result: Wikipedia entry; a search brand beacon Case study: Cisco

Case study: Dice:

Innovative invitation to “rant” inside the banner Average Interaction Time: 7 minutes and 41 seconds Those who interacted 3+times: 18 minutes and 4 seconds Case study: Dice

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RSS (Really Simple Syndication) is a technology that allows headlines and content to automatically be pushed off of one site and onto another. FM created and ran Symantec ads featuring RSS feeds from their website (updated daily). Upon click on the headline, users were directed to the article on Symantec’s site. (see Case Study on slide 3) A 2007 Webby Honoree for “Best Interactive Advertising”, B2B Unlike most ads, the Symantec creative did not experience ‘fatigue’. In fact, Symantec saw a 300% spike in response several weeks into the campaign due to the fresh, daily copy! Click Through % Typical Ads RSS Ad Time Case study: Symantec

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The Ad Spot: After each of the 9 Ask.com-sponsored episodes, the Ninja invites viewers to visit Ask.com and enter in the word “Ninjuice”. Case study: Ask.com/Ninja

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Search is a new interface to computing, but it’s more than that: it’s the beginning of a new customer-driven culture This heralds the rise of conversational media Conversational media means businesses must adapt from traditional approaches to markets… Creating a platform for users to interact with its brand and services… And learning to join the conversation on its customers’ terms. In Closing

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What Drives the Web 2.0 World: Search, Media, and Conversations John Battelle UCB, Marti Hearst, Presiding

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