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DATE ISSUED : JULY 2012                                                                                                       JULY 2012 BUSINESS NEWSLETTER




                           News Online Xchange
News Online Xchange (NOX) is the official monthly business newsletter of New Media Services Pty. Ltd. It serves to give up-to-date
information on the products and services under the NMS brand, as well as news involving the Web and Mobile industries.




 Content Moderation in Digital
 Advertising, Up Close And Personal

 Content moderation in context of a digital advertising agency is analyzing and editing user-generated material in
 order for it to be socially acceptable and Brand approved for the general public to view via Internet-based media.

 The Role of User-Generated Content in Digital Advertising                                                                Person of the Year
 Advertising is a very competitive business, and that isn't going to change soon. The
 traditional media are watching their revenues gradually wane, while brands clamour
 to get more bang for their advertising buck. Thankfully, some of the attention (and
 budgets) is turning to online, where new advertising ideas are born every minute.
 User Generated Content (UGC), also known as consumer-generated media (CGM), refers to any
 material created and uploaded to the Internet by non-media professionals, whether it’s a
 comment left on Amazon. com, a professional-quality video uploaded to YouTube, or a student’s
 profi le on Facebook. UGC has been around in one form or another since the earliest days of the
 Internet itself. But in the past five years, thanks to the growing availability of high-speed Internet
 access and search technology, it has become one of the dominant forms of global media. It is
 currently one of the fastest growing forms of content on the Internet. UGC is fundamentally
 altering how audiences interact with the Internet, and how advertisers reach those audiences.

 In 2006, UGC sites attracted 69 million users in the United States alone, and in 2007 generated $1 billion in advertising revenue. By 2011, UGC sites are
 projected to attract 101 million users in the U.S. and earn $4.3 billion in ad revenue.
                                                   `
 (Continued on next page.)



                                                e info@newmediaservices.com.au
                                                w www.newmediaservices.com.au
News Online Xchange                                                                                                          JULY 2012 BUSINESS NEWSLETTER

(Continued from previous page.)

UGC and social networking as a major force on the Internet represents the greatest opportunity and challenge to marketers since the advent of the Internet
itself. In the larger eco-system, social networking and UGC sites have provided high-value advertising inventory and audience segments needed to capture
more of the market share and targeted audience reach that advertisers demand, e.g. Microsoft’s investment in Facebook, Google’s acquisition of YouTube, and
News Corps.’ acquisition of MySpace.


  Today, brands of all sizes are eager to jump into the               How does UGC offer something unique?
  UGC/social networking environment. But doing so                     While all advertising on the Web is interactive by nature, but UGC sites offer a unique and
  blindly—without clear objectives in mind—can lead to                more complex level of engagement. Instead of inviting individual consumers into an
  an unsatisfying experience. As with any new environ-                environment of their own making, marketers advertising on UGC sites are entering a
  ment, it’s important fi rst to understand where you want            conversation initiated, maintained, and “owned” by consumers themselves. This requires
  to go and how you can get there before diving in.                   those marketers to behave differently, or risk what can be very vocal disapproval from
  UGC/social networking offers brand-building opportu-                those consumers. UGC and Social Networking isn’t all “child’s play” either. A Fall 2006
  nities far beyond what’s available through traditional              analysis by comScore Media Metrix showed that more than half of MySpace users were
  advertising, but taking advantage of those opportuni-               over 35 years old, and that 25-year-olds accounted for 71% of Friendster users. Separately,
  ties means first grasping some basics.                              executive networking site LinkedIn, reports that its average user is 39 years-old and has an
                                                                      annual income of $139,000.


Comparisons to other forms of advertising
Traditionally, marketers have been able to buy time or space on fi xed media in a controlled context. They knew where their ad would appear, what it would
look like, and perhaps most important, in what context it would be seen. In other words, they could be guaranteed their message wasn’t being delivered in a
hostile or inappropriate environment. Today, such guarantees are harder to make, and that lack of control can be a source of great anxiety for marketers. But it
also represents an unrivaled opportunity.Advertising in UGC requires marketers to alter their approach. Instead of broadcasting one-way messages at their
audiences, advertisers are compelled to engage in a conversation. Doing so carries risks, but failure to do so carries more.


US User-Generated Content Creators, by Content Type, 2008-2013 (millions)
                                               2008           2009              2010       2011          2012         2013
User-generated video                             15.4          18.1             20.6        22.7          24.9          27.2
Social networking                                71.3          79.7             87.7        94.7        100.1          105.3
Blogs                                            21.2          23.9             26.7        28.5          30.2          32.1
Virtual Worlds                                   11.6          13.9             15.4        16.9          18.4          19.1
User generated content                          82.5           88.5             95.3       101.7        108.0         114.5
creators


Worldwide User-Generated Content Creators, 2006-2011 (millions)
 2006                                                       117.9

 2007                                                             136.5

 2008                                                                     157.5

 2009                                                                              182.3

 2010                                                                                          211.1

 2011                                                                                                      237.7

Note: includes video, audio, photo sharing, blogs, wikis, personal Web sites, podcasts and online bulletin boards                     Source: eMarketer, January 2009


                                               e info@newmediaservices.com.au
                                               w www.newmediaservices.com.au
News Online Xchange                                                                                                    JULY 2012 BUSINESS NEWSLETTER


Need for Content Moderation
                                                     It is crucial to ensure that only appropriate UGC   Strict policies must be set and applied to govern
                                                     is posted on the Web site by screening and          content authenticity, originality, privacy,
                                                     filtering for mal-content. Failing to do so could   political/social correctness and legalities, both
                                                     severely impact user traffic, company brand and     locally and globally. Such policies should permit
                                                     the bottom line. The huge growth and                and promote UGC and sustain viable social
                                                     pervasive¬ness of UGC within companies’ core        network interac¬tions. Inappropriate content
                                                     online user experience poses potentially            includes, but is not limited to, profanity, sedition,
                                                     complex challenges and heightens unnecessary        violence, bare skin, false and outdated information,
                                                     exposure to risk.                                   spam and other inappropriate content.




THINKING THROUGH CONTENT MODERATION

                                   CONTENT MODERATION METHODS                                              HOW BAD CONTENT IS
                                                                                                           DETERMINED.
                 Machine Moderation              Community Moderation              Human Moderation
                                                                                                                      Reputation

                                                                                                                     Know Content

                                                                                                                Flagging and Feedback

                                                                                                                  Standards & Policy




   Content moderation has grown into a discipline that requires expertise in pattern detection and analysis. Although there are numerous software-
   based solutions in the market, they do not address the custom needs of particular businesses. With the right level of investment in moderating
   content, Web site operators can create an optimal strategy that maximizes customer satisfaction while minimizing abuse and impact on the
   company’s brand and reputation. With the increasing growth of UGC, as well as the technology, cost and scale needed to moderate it, achieving an
   optimal long-term solution requires detailed strategic planning and execution. A variety of options currently exist to help Web site operators protect
   and optimize their investments and reduce increasing moderation costs. Many organizations have outsourced their content moderation operations
   to reduce costs and enable more scalable and predictable business outcomes. Others have implemented both custom and standardized technology
   options to replace existing technology or to cut devel¬opment and maintenance expenses.


   Some companies have also experimented with content moderation crowdsourcing solutions to replace human moderation, with mixed success.
   While seemingly leveraging an unlimited number of resources at minimal cost may seem ideal, crowdsourcing to date still produces poor modera-
   tion quality. Other Web sites have gone purely with community moderation to reduce costs, but this also may produce mixed results, as the
   moderation of UGC can become overwhelm¬ing even for members


   Thus, many solutions are available for content moderation and evaluation, implementation and management. However, finding the right content
   moderation solution could be a difficult endeavor without solid strategic advice and a well-thought-out approach, leveraging industry best
   practices customized for specific needs, as well as a clear understanding of the objectives and ecosystem of your Web site.




                                           e info@newmediaservices.com.au
                                           w www.newmediaservices.com.au
News Online Xchange                                                                                                     JULY 2012 BUSINESS NEWSLETTER


Digital Advertising: Today’s Marketing Approach
 Investing in digital marketing pays backs with high ROI. Even a simple tweet or a Facebook post can
 bring glory to a business- if everything is performed properly.


 In the past decades, businesses were paying newspaper and magazine publications to print their ads.
 Public relations departments of big companies played the game by begging TV producers for interviews.




 Now, the marketing landscape has changed. Digital advertising gave rise to a new dimension of
 attracting and influencing customers. With this new marketing approach, businesses can reach their
 customers in a more affordable, convenient and engaging way.


 According to pros, digital advertising allows businesses to deal with their customers and consumers
 directly via the internet. The former approach deals with businesses approaching media people who
 impart the promotional message to the target audience (two-way process).


 Viral web materials are a proven ingredient of today’s business promotion. YouTube has been taking part
 in helping businesses spread their viral videos. Viral videos, which are mostly humorous clips, are shared
 by viewers to others on the internet for free. Thus, successful advertising creations nowadays are mostly
 novel, interesting and pop culture-based.




                                                                                    Most businesses seeking for international prominence create a Facebook
                                                                                    page. They get moderators to manage the social media page. Facebook
                                                                                    groups can narrow down the target audience of a business page. Other
                                                                                    businesses use other social networking sites, like Twitter and Google Plus,
                                                                                    to directly socialize with their customers.


                                                                                    Social media buttons and plug-ins are also becoming essential website
                                                                                    components. The buttons allow visitors to share the website link to their
                                                                                    social networking circles.




  Tablets and internet-enabled phones are replacing the old version of mobile
  phones that only allow calling and texting functions. These new gadgets
  facilitate digital advertisements in reaching a wider range of audiences.


  Digital advertising sparked a new level of transparency among businesses.
  Websites, social networking sites, blog sites and digital advertisements can be
  accessed anytime and anywhere by anyone. Information, both the truthful and
  fabricated ones, is overflowing on the web. Moderation services make sure
  that web entries and advertisements associated to the business do not
  damage the reputation of a business.




                                             e info@newmediaservices.com.au
                                             w www.newmediaservices.com.au
News Online Xchange                                                                                                                            JULY 2012 BUSINESS NEWSLETTER


Information Highway
  How much do sites profit from UGC?
  Estimated Revenue for each site in 2010:




  45MILLION                              243MILLION                                               288MILLION                      945MILLION                    1.860BILLION

  UGC Advertising Statistics
  CPM (Cost per 1000 Impressions) for Various Sites
  All based on US Market

                                                                                                               REGION                   2011       2012      2013     2014     2015
 CPM FOR FACEBOOK ADS BY DEMOGRAPHIC             CPM FOR FACEBOOK ADS BY DEMOGRAPHIC

                                                                                                               North America            41.7%      41.8%    41.5%     40.7%   40.2%

                                    $1.28
                                                                                                               Western Europe           28.8%      28.0%    27.3%     27.0%   26.5%
                   $1.24                                                                         $3.56

                                                                 $3.22                                         Asia-Pacific             24.1%      24.6%    25.1%     25.8%   26.2%
                                                                                 $3.15
  $1.16
                           $1.14                                                                               Eastern Europe            2.7%       2.7%     2.7%      2.8%    2.8%
                                                                         $2.66
                                                 $2.47
                                                                                         $2.44
                                     MARRIED




                                                                                                               Latin America             2.2%       2.5%     2.5%      2.8%    3.1%
           $1.05
                                                         $2.00
                                                                                                               Middle East and Africa    0.5%       0.7%     0.9%      1.1%    1.3%




    The Rise and Fall of Advertising Media                                                                                                                     75%



          % change in advertising spend (2009-2010)

                                                                                                                                        32%
                                                                                                   11%             14%
                                      1%          2%                       9%
               Newspaper           Magazines     Outdoor                 Radio                    Television      Internet          Social Media           Mobile Marketing

                   -10%




                                                                                                     Maximize your websites social
                                                                                                     potential by adding an Instant
                                                                                                     Messenger feature!


                                                e info@newmediaservices.com.au
                                                w www.newmediaservices.com.au

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NOX JULY 2012

  • 1. DATE ISSUED : JULY 2012 JULY 2012 BUSINESS NEWSLETTER News Online Xchange News Online Xchange (NOX) is the official monthly business newsletter of New Media Services Pty. Ltd. It serves to give up-to-date information on the products and services under the NMS brand, as well as news involving the Web and Mobile industries. Content Moderation in Digital Advertising, Up Close And Personal Content moderation in context of a digital advertising agency is analyzing and editing user-generated material in order for it to be socially acceptable and Brand approved for the general public to view via Internet-based media. The Role of User-Generated Content in Digital Advertising Person of the Year Advertising is a very competitive business, and that isn't going to change soon. The traditional media are watching their revenues gradually wane, while brands clamour to get more bang for their advertising buck. Thankfully, some of the attention (and budgets) is turning to online, where new advertising ideas are born every minute. User Generated Content (UGC), also known as consumer-generated media (CGM), refers to any material created and uploaded to the Internet by non-media professionals, whether it’s a comment left on Amazon. com, a professional-quality video uploaded to YouTube, or a student’s profi le on Facebook. UGC has been around in one form or another since the earliest days of the Internet itself. But in the past five years, thanks to the growing availability of high-speed Internet access and search technology, it has become one of the dominant forms of global media. It is currently one of the fastest growing forms of content on the Internet. UGC is fundamentally altering how audiences interact with the Internet, and how advertisers reach those audiences. In 2006, UGC sites attracted 69 million users in the United States alone, and in 2007 generated $1 billion in advertising revenue. By 2011, UGC sites are projected to attract 101 million users in the U.S. and earn $4.3 billion in ad revenue. ` (Continued on next page.) e info@newmediaservices.com.au w www.newmediaservices.com.au
  • 2. News Online Xchange JULY 2012 BUSINESS NEWSLETTER (Continued from previous page.) UGC and social networking as a major force on the Internet represents the greatest opportunity and challenge to marketers since the advent of the Internet itself. In the larger eco-system, social networking and UGC sites have provided high-value advertising inventory and audience segments needed to capture more of the market share and targeted audience reach that advertisers demand, e.g. Microsoft’s investment in Facebook, Google’s acquisition of YouTube, and News Corps.’ acquisition of MySpace. Today, brands of all sizes are eager to jump into the How does UGC offer something unique? UGC/social networking environment. But doing so While all advertising on the Web is interactive by nature, but UGC sites offer a unique and blindly—without clear objectives in mind—can lead to more complex level of engagement. Instead of inviting individual consumers into an an unsatisfying experience. As with any new environ- environment of their own making, marketers advertising on UGC sites are entering a ment, it’s important fi rst to understand where you want conversation initiated, maintained, and “owned” by consumers themselves. This requires to go and how you can get there before diving in. those marketers to behave differently, or risk what can be very vocal disapproval from UGC/social networking offers brand-building opportu- those consumers. UGC and Social Networking isn’t all “child’s play” either. A Fall 2006 nities far beyond what’s available through traditional analysis by comScore Media Metrix showed that more than half of MySpace users were advertising, but taking advantage of those opportuni- over 35 years old, and that 25-year-olds accounted for 71% of Friendster users. Separately, ties means first grasping some basics. executive networking site LinkedIn, reports that its average user is 39 years-old and has an annual income of $139,000. Comparisons to other forms of advertising Traditionally, marketers have been able to buy time or space on fi xed media in a controlled context. They knew where their ad would appear, what it would look like, and perhaps most important, in what context it would be seen. In other words, they could be guaranteed their message wasn’t being delivered in a hostile or inappropriate environment. Today, such guarantees are harder to make, and that lack of control can be a source of great anxiety for marketers. But it also represents an unrivaled opportunity.Advertising in UGC requires marketers to alter their approach. Instead of broadcasting one-way messages at their audiences, advertisers are compelled to engage in a conversation. Doing so carries risks, but failure to do so carries more. US User-Generated Content Creators, by Content Type, 2008-2013 (millions) 2008 2009 2010 2011 2012 2013 User-generated video 15.4 18.1 20.6 22.7 24.9 27.2 Social networking 71.3 79.7 87.7 94.7 100.1 105.3 Blogs 21.2 23.9 26.7 28.5 30.2 32.1 Virtual Worlds 11.6 13.9 15.4 16.9 18.4 19.1 User generated content 82.5 88.5 95.3 101.7 108.0 114.5 creators Worldwide User-Generated Content Creators, 2006-2011 (millions) 2006 117.9 2007 136.5 2008 157.5 2009 182.3 2010 211.1 2011 237.7 Note: includes video, audio, photo sharing, blogs, wikis, personal Web sites, podcasts and online bulletin boards Source: eMarketer, January 2009 e info@newmediaservices.com.au w www.newmediaservices.com.au
  • 3. News Online Xchange JULY 2012 BUSINESS NEWSLETTER Need for Content Moderation It is crucial to ensure that only appropriate UGC Strict policies must be set and applied to govern is posted on the Web site by screening and content authenticity, originality, privacy, filtering for mal-content. Failing to do so could political/social correctness and legalities, both severely impact user traffic, company brand and locally and globally. Such policies should permit the bottom line. The huge growth and and promote UGC and sustain viable social pervasive¬ness of UGC within companies’ core network interac¬tions. Inappropriate content online user experience poses potentially includes, but is not limited to, profanity, sedition, complex challenges and heightens unnecessary violence, bare skin, false and outdated information, exposure to risk. spam and other inappropriate content. THINKING THROUGH CONTENT MODERATION CONTENT MODERATION METHODS HOW BAD CONTENT IS DETERMINED. Machine Moderation Community Moderation Human Moderation Reputation Know Content Flagging and Feedback Standards & Policy Content moderation has grown into a discipline that requires expertise in pattern detection and analysis. Although there are numerous software- based solutions in the market, they do not address the custom needs of particular businesses. With the right level of investment in moderating content, Web site operators can create an optimal strategy that maximizes customer satisfaction while minimizing abuse and impact on the company’s brand and reputation. With the increasing growth of UGC, as well as the technology, cost and scale needed to moderate it, achieving an optimal long-term solution requires detailed strategic planning and execution. A variety of options currently exist to help Web site operators protect and optimize their investments and reduce increasing moderation costs. Many organizations have outsourced their content moderation operations to reduce costs and enable more scalable and predictable business outcomes. Others have implemented both custom and standardized technology options to replace existing technology or to cut devel¬opment and maintenance expenses. Some companies have also experimented with content moderation crowdsourcing solutions to replace human moderation, with mixed success. While seemingly leveraging an unlimited number of resources at minimal cost may seem ideal, crowdsourcing to date still produces poor modera- tion quality. Other Web sites have gone purely with community moderation to reduce costs, but this also may produce mixed results, as the moderation of UGC can become overwhelm¬ing even for members Thus, many solutions are available for content moderation and evaluation, implementation and management. However, finding the right content moderation solution could be a difficult endeavor without solid strategic advice and a well-thought-out approach, leveraging industry best practices customized for specific needs, as well as a clear understanding of the objectives and ecosystem of your Web site. e info@newmediaservices.com.au w www.newmediaservices.com.au
  • 4. News Online Xchange JULY 2012 BUSINESS NEWSLETTER Digital Advertising: Today’s Marketing Approach Investing in digital marketing pays backs with high ROI. Even a simple tweet or a Facebook post can bring glory to a business- if everything is performed properly. In the past decades, businesses were paying newspaper and magazine publications to print their ads. Public relations departments of big companies played the game by begging TV producers for interviews. Now, the marketing landscape has changed. Digital advertising gave rise to a new dimension of attracting and influencing customers. With this new marketing approach, businesses can reach their customers in a more affordable, convenient and engaging way. According to pros, digital advertising allows businesses to deal with their customers and consumers directly via the internet. The former approach deals with businesses approaching media people who impart the promotional message to the target audience (two-way process). Viral web materials are a proven ingredient of today’s business promotion. YouTube has been taking part in helping businesses spread their viral videos. Viral videos, which are mostly humorous clips, are shared by viewers to others on the internet for free. Thus, successful advertising creations nowadays are mostly novel, interesting and pop culture-based. Most businesses seeking for international prominence create a Facebook page. They get moderators to manage the social media page. Facebook groups can narrow down the target audience of a business page. Other businesses use other social networking sites, like Twitter and Google Plus, to directly socialize with their customers. Social media buttons and plug-ins are also becoming essential website components. The buttons allow visitors to share the website link to their social networking circles. Tablets and internet-enabled phones are replacing the old version of mobile phones that only allow calling and texting functions. These new gadgets facilitate digital advertisements in reaching a wider range of audiences. Digital advertising sparked a new level of transparency among businesses. Websites, social networking sites, blog sites and digital advertisements can be accessed anytime and anywhere by anyone. Information, both the truthful and fabricated ones, is overflowing on the web. Moderation services make sure that web entries and advertisements associated to the business do not damage the reputation of a business. e info@newmediaservices.com.au w www.newmediaservices.com.au
  • 5. News Online Xchange JULY 2012 BUSINESS NEWSLETTER Information Highway How much do sites profit from UGC? Estimated Revenue for each site in 2010: 45MILLION 243MILLION 288MILLION 945MILLION 1.860BILLION UGC Advertising Statistics CPM (Cost per 1000 Impressions) for Various Sites All based on US Market REGION 2011 2012 2013 2014 2015 CPM FOR FACEBOOK ADS BY DEMOGRAPHIC CPM FOR FACEBOOK ADS BY DEMOGRAPHIC North America 41.7% 41.8% 41.5% 40.7% 40.2% $1.28 Western Europe 28.8% 28.0% 27.3% 27.0% 26.5% $1.24 $3.56 $3.22 Asia-Pacific 24.1% 24.6% 25.1% 25.8% 26.2% $3.15 $1.16 $1.14 Eastern Europe 2.7% 2.7% 2.7% 2.8% 2.8% $2.66 $2.47 $2.44 MARRIED Latin America 2.2% 2.5% 2.5% 2.8% 3.1% $1.05 $2.00 Middle East and Africa 0.5% 0.7% 0.9% 1.1% 1.3% The Rise and Fall of Advertising Media 75% % change in advertising spend (2009-2010) 32% 11% 14% 1% 2% 9% Newspaper Magazines Outdoor Radio Television Internet Social Media Mobile Marketing -10% Maximize your websites social potential by adding an Instant Messenger feature! e info@newmediaservices.com.au w www.newmediaservices.com.au