How do you monetize User Generated Content (UGC)?

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Permalink Reply by Rob Noyes on July 5, 2008 at 10:26pm

It depends, but basically, the content is not of nearly as much value as the individual uploading it. Efforts to monetize should concentrate on the individual user rather than the content.

For example, let's say I have a business website that sells technology products such as HDTVs. Also part of my site is a blog that discusses new products to which I have lots of visitors blogging and commenting. Likewise, I also have a forum where members can discuss problems I may not address in my blog.

To attempt to arrange the site's existing UGC (blog comments and forum posts) in such a way as to increase its value to customers visiting my product sales page is futile. Instead, I should use Web 2.0 tools, IM specifically, to connect my network (my bloggers and forum members) to customers as they visit the site at the same time members are online. Now, the UGC uploaded by both customers and members is in direct relation to my products. If the member goes on to sell the customer a product, I cut the member in on my take.

For sites that simply have a social network generating content in millions of different directions (Facebook, MySpace, etc.), I suggest they find a product and start getting your network to sell it for them.

Regards.

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Permalink Reply by OlegR on July 7, 2008 at 10:39am

Thanks Rob!

To clarify the question - I'm looking for ways for news/online content centric sites like NYT.com, or CNN.com to monetize all that news-related UGC they are getting.
What would be the best publisher's way to monetize UGC?
How about in B2B publishing?

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Permalink Reply by Rob Noyes on July 8, 2008 at 7:50pm

User-generated media can be monetized when it is collected and then organized by location - not necessarily 'geo-tagging,' although that would be nice, but simply organized by business location.

The reason is because the indirect objects of almost all UGC find value in appearing in the uploaded content. Specifically, the location in the background of the content being generated is enriched.

Take, for example, this story on CNN.com, Ringo Starr's 68th Birthday Party in Chicago. The Hard Rock Cafe, in front of which the primary media subject, Ringo Starr, was recorded, finds value in this UG media, not just because it loves Ringo, but because the HRC was recorded in the background. From the moment this UGC is created and uploaded, it becomes a supplement to the online marketing material the HRC needs to attract more big events...maybe, Paul McCartney's birthday.?.

Here's how CNN.com can monetize the content...

CNN.com now knowing that the HRC values the media that was generated can now approach HRC with an advertising model that relates display advertising to any UG news media relevant to the HRC, allowing the display ad and any related UG media to appear together on the same pages; even better, CNN can offer the appearance of an HRC display ad and any historic HRC-related UG news media in context with any future news stories in which the HRC appears.

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Permalink Reply by Fred Faulkner on July 9, 2008 at 9:19am

Rob,
Your model requires a change that currently exists in most advertising departments where they have call lists determined by a campaign, previous history or potential.

What you are suggesting is a "reactionary" sales model where the UGC is monitored for the type of advertising opportunity mentioned.

Certainly a Ringo Starr will generate some buzz and attract some advertising potential. What percent of the UGC has that level of potential though? Is the local convenient store caught in the background going to pay for that "value"??

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Permalink Reply by OlegR on July 9, 2008 at 11:45am

Rob's approach is great for community-driven UGC sites, for example sites hunting for celebrities, etc.
In those cases UGC contextually connects some people/objects of social value to businesses.

At the same time, how would NYT.com monetize a comment like "yeah war in Iraq is not good for the economy, we should vote for Obama" or something like that

This is what companies are looking for - ways to monetize any kind of UGC - not just UGC associated with certain people/events/places/etc.

How would you monetize let's say comments on a legal case that was won against for example Burger King or Microsoft?

(PS. that phrase is a random examples, nothing political is expressed).

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Permalink Reply by Rob Noyes on July 10, 2008 at 9:41pm

Hi all,

Using the Hard Rock and Ringo were appropriate, but both are high profile. Let me change examples.

Here's something different...but the same...

http://www.leesburg2day.com/shared-content/gallery/?galleryid=1&...

This page from a small-town online news journal holds a pic of a young lady jumping a pony over a show jump at a location known as 'Morven Park' near Leesburg, Va...1/2 a continent away from Ringo and Chicago.

This pic might have been uploaded to the local online paper (no different than uploading to the NYT or CNN) by the girl's parents or friends. In continuing the point I made before, besides the personal value attached to this photo for the girl, the pic becomes valuable to the indirect object captured in the background, Morven Park. Properly labeled and tagged, Morven Park has an interest in this UGC in how it and other similar online media can be used alone or together to attract more equestrian events to its location in the future. Aware of this, the online news journal, LeesburgToday.com, NYT.com or CNN.com, can monetize this UGC by offering it back to Morven Park for advertising. For the online journal, an advertising model is now revealed - every time an an article or story concerning pony club, horses, equestrian events, riders, etc., etc., is run, the online journal knows that Morven Park has in interest in ensuring this media appears somewhere on the same page and the journal knows that Morven Park will be willing to pay to have this media appear...the same as the HRC would be willing to pay to advertise its location as a place where celebrities celebrate their b-days. In this pony club/Morven Park medi, no celebrity is present and no big name location is being captured, but this small-town media is no less important to its indirect object, Morven Park, in targeting its market, than Ringo's pic is to the HRC.

Again, organized by location, the media becomes more valuable.

Now...as far as the associated value in UGC, such as comments about the pic, like 'Keep your back straight,' 'Beautiful pony,' etc., all this media falls into the 'un-focused' UGC realm. In my opinion, it can't be monetized...at present.

Looking forward to your replies.

Rob

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