Transcript Making the market for digital information – ADVERTISING

What is Information Valet Project?
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Research effort incubated at D.W. Reynolds
Journalism Institute
Bill Densmore, Jeff Vander Clute, Steve Mott,
Martin Langeveld
Many other contributors of ideas (via "Blueprint"
events)
Challenge: How to sustain values,
purposes of journalism?
•Mass markets splintering
•Search advertising effective competitor
•Classifieds done better on the web
•What sustains journalism in that
environment?
News as a service not a product
•Helping user find access to info from anywhere
•Creating a conversation, community ... network
•Not just about the story; smaller, larger remix
•The news social network
•New concept: The "InfoValet" – trusted
advisor/broker
•But how to be rewarded?
Making the market for digital
information – HOW?
•Consumer/user establishes account with InfoValet
•Shares as much demographic, preference info as
desired
•This information shared among multiple participating
sites
•Records of activity logged, aggregated to InfoValet,
purged
•Establishes "shared-value network" for commerce,
service
One way it could work
To run: http://web.missouri.edu/~bowera/infovalet.html
Making the market for digital
information – NEWS/CONTENT
•Shared-user network for news-oriented social
interaction
•Subscription access to multiple websites (cable model)
•Access by time, or bundle
•Economic purchasing on a per-item basis (music, video,
text)
•Enables "public radio model" too (Kachingle, others)
Making the market for digital
information – ADVERTISING
•Rewards for activities, viewing ads, sponsored material
•Example: The Ford Explorer PDF download
•Advertising network based on interest not inference
•Higher CPMs for the news industry
•Consistent with Federal Trade Commission privacy
guidelines
User Jeff is a software engineer.
He has profiled himself as follows:
The profiling which
informs the news served:
•He is interested in the
semiconductor industry.
•He follows John Deere &
Co. stock prices.
•He graduated from the
Univ. of Kansas.
•He listens to WBUR's "The
Point" regularly.
The profiling which informs
the text/display ad offers:
•His occupation as a software
engineer.
•His expressed interest in
cuisine.
•His expressed interest in
music.
How will it work?
•InfoValet specifies "pluggable framework"
(competitive partners)
•APIs enable different apps to share data according
to framework specification.
•Ecosystem architecture distributed, not centralized
•Security – User info encrypted and unreadable except
where authorized
•Choice – User decides when to release info
Adoption strategy:
Journalism Trust Association
•Started with Dec. 3-5 "Blueprint" to frame issues
•Unveil JTA / IVP vision at April 27 DC event
•Non-stock, non-profit JTA guides early years
•Non-competitive ownership, trusted control
•"Founding members" advise early decisions
•Broadly representative board gradually enlarged
•Controlling owner of InfoValet Service Corp.
InfoValet Service Corp. –
Convenor, integrator
•For profit LLC or L3C / controlled by JTA
•Convenes industry around specific system
•Makes/enforces rules for use of InfoValet logo/service
•Integrates, contracts with advertising, tech, financial-service
pieces
•Any profits dividended to JTA and other stakeholders
• Possibly transaction fees, license fees
How financed?
•RJI incubated through Densmore RJI 2008-2009 fellowship
•JTA will give note to RJI/Mizzou, convertible to stock in IVSC
•Plan for self funding of IVSC
•Among startup funding options for IVSC:
• Foundations (if formed as L3C), as program-related
investment
• Strategic investors (who may be licensed/contract partners)
• Debt financing
• Equity stakeholders (nonvoting?)
Measuring success
•New business for news organizations
•New ecosystem for news aggregation,
customization, sharing
•New revenue besides advertising
•Connects news with social network
•Possibility of dividends to JTA to support
journalism
•Critical Internet framework guided by journalists