Big media challenged by user-generated content: ad:tech panel

SAN FRANCISCO – Online content aggregators and professional online content creators are challenged with creating revenue models in a user-generated world.

This was the message given yesterday by executives in the panel called, “Content is King! (again?),” at the ad:tech Interactive Media Conference in San Francisco.

“With the democratization of tools, the reality is, that five minutes spent on YouTube watching a guy doing something silly, is five minutes not spent watching ‘The Office,'” said Jason Hirschhorn, president of Sling Media Entertainment Group. “Users don’t care as much about professionally created video or user generated video as long as it is good and entertaining content.”

With this model, content aggregators like YouTube are looking at ways to monetize with marketing partners.

“I think that we care a lot about our content partners and we want our partners who do have professional content on our site to make revenue,” said Suzie Reider, head of advertising at “But we are looking at ad executions that will not disrupt the user experience, but will still give marketers a chance to create revenue.”

Some ideas that YouTube is looking into include commercials that precede the video, overlay ads and display ads.

But the rise of user-generated content does not have to threaten big media. Kourosh Karimkhany, general manager at Wired Digital, said that the integration of professional content with user generated content actually increases engagement.

“I don’t think it’s difficult to convince advertisers how we make money from the conversation,” he said. “Actually the conversation is more interesting than the stagnant form of traditional media.”

Wired uses blogs to respond to users and responds to popular blogs within its readership’s community, creating a dialog within the public community.

Regardless of professional versus user-generated content, one key is distribution.

“Distribution is absolutely mission-critical moving forward, so we need to work with the right companies to get our content out there,” said Caroline H. Little, CEO/publisher of Washingtonpost.Newsweek Interactive. “One can’t exist without the other: Aggregators need the content and content providers need the aggregators.”

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