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Checking in on Facebook Instant Articles

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fb instant Fortune media hound Mathew Ingram noted in May 2015, when Facebook’s Instant Articles format launched, that Big Blue saw it as “as a mutual exchange of goods, driven by the company’s desire to help publishers make their articles look as good as possible and reach more readers.” He went on to say:

But whenever you have an entity with the size and power of Facebook, even the simplest of arrangements becomes fraught with peril, and this is no exception. Why? Because a single player holds all of the cards in this particular game.

Around that time, Gawker’s Nick Denton, since brought low by a multimillion-dollar lawsuit loss you may have seen coverage about, went so far as to call the Facebook-publisher relationship not a distribution partnership but “abject surrender”:

So many media organizations are just playing to Facebook. They’re just catering to the preferences…expressed in some algorithm that nobody understands. It’s almost like we’re leaving offerings for some unpredictable machine god that may or may not bless us.

Almost a year after its launch, and a year’s worth of tweaks to the Instant Articles product, we have a more complete picture of the pros and cons.

Pros

Massive distribution open to many publishers
Following its closed launch with a limited amount of “partners,” including the New York Times and National Geographic, Facebook has opened the program to publishers big and small, in the U.S. and around the world, “giving every news organization the capability to publish their content on the social network,” according to Poynter.

WordPress plug-ins make it easier
After a rocky launch that required programmers to reformat every article especially for Facebook, the company was able to scale it to most new organizations through a WordPress plugin the company created, “essentially greasing the skids for mass adoption of the program among news organizations.” Per Poynter:

The plugin is being built in partnership with Automattic, the parent company of WordPress.com, and helps translate news stories to Facebook’s Instant Articles format. This removes a significant hurdle for news organizations.

New potential revenue streams
It’s no secret that magazines are continuing to fold and even digital-native sites can’t make the numbers work. We’ve also seen the rise of ad blockers and native/sponsored/branded content. Are content partnerships like these the answer, or at least an answer?

Cons

Only certain companies are seeing real benefits
BuzzFeed and Vox, to name two, are on board with the new format. Vox even hired media heavy hitter Choire Sicha to oversee its distributed partnerships (Facebook, Snapchat, Apple News and others, presumably). Per the WSJ, “Vox Media has long counted its own content platform as a key to its success. But now it says the future lies in platforms run by others, so it’s bringing in a digital media stalwart to help strengthen those ties.”

But others have yet to make hay from Facebook’s sunshine. As Fortune notes:

The media industry is in a “get big or go home” phase.

BuzzFeed and Vox are big, so they can play in Facebook’s Instant Articles world better than the smaller guys can.

It’s difficult (and costly) to track the audience
As AdAge reports, publishers have to pay more to track their audiences on distributed platforms. Yes, they get bigger distribution (theoretically, anyway), but ComScore apparently charges “$15,000, per platform, per year, to add tracking capabilities.” And six months post-launch, Apple News still doesn’t even have ComScore integration. This puts publishers in a tough position: In order to help their bottom lines, they want to reach the audience wherever the audience is, but doing so costs money they don’t have.

It’s not clear that publishers make money
Following on the point above, in the distributed content ad model, if you don’t know how much audience you have, you also don’t know how much revenue you stand to make. At this point, publishers are still crossing their fingers that this translates to revenue.

Jobs continue to be cut but not added back
Publishers are “re-allocating resources to build teams that produce content for specific social platforms,” per AdAge, but they’re cutting far, far more than they’re adding. Journalism is going through the kind of massive…transition, disruption, sea change, slaughter, whatever you want to call it, that is epic in scale. There are too many outlets that have closed up shop or gone through major layoffs to name. It’s especially chilling when digital-only publications like Mashable, IBT and Slant (just in the past couple of weeks) can’t even make the numbers work.

Distributed content alone isn’t going to save publishers. Maybe a combination of distribution, ads that escape blockers, native/sponsored content and cutting more staff will help. Also? Prayer. Honestly, prayer seems to be publishers’ main strategy at the moment: Please, Facebook and Google, don’t change your algorithms. Please, Snapchat and Apple News. Please, BuzzFeed and Vice. Please, someone figure this out for us. God bless us, every one.

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Media gut check: Gods (BuzzFeed and Facebook) help us!

Anna Wahrman 1 Comment

It’s too late to be timely on this, considering January is now over, but I finally read Mat Honan’s Wired piece about media start-ups. I’ve called out some key passages below, but the highlight of Honan’s piece happened off-page. The setup of the print-article-about-online-media-startups thing was awkwardly funny enough, but the punch line of the whole situation is that this was Honan’s last feature for Wired because after interviewing BuzzFeed for the article, he left to take a job at BuzzFeed. In this Wired piece, he wrote, “Everyone wants a piece of BuzzFeed.” The irony either stings or tickles, depending on your perspective.

The best encapsulation of the piece comes at the end, but I’m going to put it right up front so as not to bury Honan’s conclusion. It comes down to this:

Here is the big secret: Nobody has it figured out. Everyone’s just hoping not to be totally fucked six months from now! There’s no retreating from the unbundled story. We aren’t going to start going back to the front pages of websites any more than we’re going to go back in droves to print. Times will change, but they won’t change back. Which means that, ultimately, the best and only way for publishers to win your attention is with really good stories. A good story, well told and suited for its audience, has always been the thing and always will be. But never more than now, when the story has to live on its own.

Hey, that’s what I’m always saying! More from Honan:

The media has been so completely flattened and democratized that your little sister can use the same distribution methods as the world’s most powerful publishers. She has instant access to you—potentially to everyone—and she doesn’t need to invest in broadcast towers or a printing press, satellites or coaxial cable….Even Hearst never had to compete with corgi videos. But the thing is, the media isn’t just competing with your little sister—it’s co-opting her, using her as a vector to spread its content. She is the new delivery mechanism. The question for news publishers is no longer how to draw an audience to their sites, it’s how to implant themselves into their audience’s lives.

The must-see publication of the 21st century is the first vibration in your pocket. While news apps have to be fast, they also have to practice restraint. Vibrate a pocket too often and people will delete your app for being annoying. Gone from the homescreen! And good luck getting someone to try it again.

[BuzzFeed’s Dao] Nguyen sees BuzzFeed as a technology company as much as a media company, and that means investing in data and software. “When media companies think of growth, they tend to think of it as a marketing function,” Nguyen says. “We talk about growth as a technology function—building tools and products, and making changes in your platform.” …BuzzFeed has tools like a headline optimizer. It can take a few different headline and thumbnail image configurations and test them in real time as a story goes live, then spit back the one that is most effective. Once a story goes up, an algorithm looks at the early traffic and social activity and predicts whether it is going to be a hit.

“There’s a lot of precedent of distribution companies and content companies building businesses together,” [BuzzFeed’s Jonah] Peretti says. “[But] the algorithms are always changing. We have a very long-term view, and the only way to succeed in the long run is to make content people love to share with their friends, tell stories that are meaningful to people’s lives, and break news stories that have an impact on the world.”

Honan’s summary of the media’s (co?)dependence on Facebook…

When Facebook is the distribution mechanism, its whims dictate what your audience sees. A single decision about what kinds of content should appear in the News Feed could take away hundreds of millions of readers from BuzzFeed.

…leads nicely into Will Oremus’s Slate article about the same. Oremus’s piece is a well-done brief but complete summary of the way website publishing has evolved dramatically over the past not-even-decade, from the user typing in a URL to searching on Google to social sharing. He discusses how the media ran toward the ball each time, first gaming Google’s algorithms and then Facebook’s.

In fact, Facebook has flipped the script on the publishers, who are now utterly reliant on Facebook’s social media juju for their paychecks. Basically, Facebook has told publishers that videos will auto-play on Facebook users’ news feeds—but only if those videos were uploaded via Facebook, not via an outbound link to the publisher. So if a publisher merely posts a video link to its (probably very expensively produced!) own content, it will get dinged by Facebook. Oremus summarizes the problem thusly:

Facebook is now cutting your website out of the equation entirely when it comes to videos, the fastest-growing and most lucrative online medium. If you post a video on your site, it is likely to be received poorly on Facebook, and very few people will see it, so you won’t make much money. If you post it on Facebook, it may be seen by millions. But the advertisements in Facebook’s news feed belong to Facebook, not you. The side effect of posting a video on Facebook is to make Facebook the publisher of that video and to demote [publishers] to the role of producer. The only question is whether Facebook will deign to share any of that money with you.

His prediction?

Facebook will set the terms for the sharing of revenue from videos posted in its news feed, and those terms will be very favorable to Facebook. Each website will have to decide for itself whether to accept those terms. Many will resist, recognizing that they can’t possibly make as much money from videos posted on Facebook as they did back when Facebook generously linked out to videos hosted on their own sites. But some will accept, eager to be on the leading edge of the latest trend in content distribution. Some may lose money on the deal, but that doesn’t actually matter. Because those that accept will be, by and large, startups backed by venture capitalists who are willing to lose money for years as long as they’re winning market share. The holdouts will hew as long as they can to their outmoded practice of posting links on Facebook instead of full videos, but eventually they’ll either give in or lose out.

He goes on to predict that video is just the beginning, and you just know he’s right.

If Facebook and its users find that video works better when it’s embedded in the news feed, they might soon find that the same principle applies to gifs, listicles, photo essays, and even full news articles. Facebook could start by displaying a short preview in users’ news feeds, as it does now. Then, when the user hovers over the preview, the rest of the post could drop down. Posting full articles on Facebook, rather than just linking to them, would of course be optional for publishers. But it isn’t hard to imagine a Facebook blog post in late 2016 innocently advising partners in the media that full stories posted directly to the news feed appear to be doing quite well on the social network.

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Is Facebook destined to fail? Don’t bet on it

Anna Wahrman Leave a comment

I know Michael Wolff is a provocateur, and I take just about everything he does, says or writes with a large grain of salt. But this Technology Review piece about Facebook being “a bust” is just ridiculous in its arguments and assumptions. He basically makes a few on-the-nose observations, draws all the wrong conclusions, then dismantles his original thesis.

Basically, he writes, Facebook is destined to fail because it’s ad-supported.

He makes a correct, if rather obvious, observation: “At the heart of the Internet business is one of the great business fallacies of our time: that the Web, with all its targeting abilities, can be a more efficient, and hence more profitable, advertising medium than traditional media.” And he is right when he says that “the daily and stubborn reality for everybody building businesses on the strength of Web advertising is that the value of digital ads decreases every quarter, a consequence of their simultaneous ineffectiveness and efficiency.” And of course he’s on target when he reports, “I don’t know anyone in the ad-Web business who isn’t engaged in a relentless, demoralizing, no-exit operation to realign costs with falling per-user revenues, or who isn’t manically inflating traffic to compensate for ever-lower per-user value.”

But there’s nothing new there — any of it. We already know CPMs don’t work. As an industry, we’re testing out (or should be, anyway) new revenue streams to see what will work. Pay walls? Maybe — but the jury’s still out whether non-print-subscribing users will put up money for the website only. Cutting jobs (and quality)? Likely, except while it helps the bottom line in the short-term, it erodes trust between reader and media in the long-term. Better targeted ads? Probably, yes, until everyone opts out and/or the government bans it. Running the exact same stories on different local channels to save on news-gathering and ad sales teams? I hope to the heavens that stops really soon. Meantime, our collective time is probably better spent thinking up new ways to do business online and encouraging and learning from those companies who are testing new ways of doing business — like Facebook. Otherwise, you’re just a hater.

So his conclusion that “Facebook is not only on course to go bust, but will take the rest of the ad-supported Web with it” is an utterly hyperbolic eye-roller. And his acknowledgment that the company “has convinced large numbers of otherwise intelligent people that the magic of the medium will reinvent advertising in a heretofore unimaginably profitable way, or that the company will create something new that isn’t advertising, which will produce even more wonderful profits” is actually an argument in favor of the very thing he claims to want fixed a mere paragraph before. Not only should Facebook “reinvent advertising,” it must. Because the way things work now for consumer websites, as Wolff acknowledges, isn’t working. And I think it will. Or at least I wouldn’t bet against ’em.

Wolff draw parallels between Google and Facebook, yet somehow fails to draw a similar parallel for Facebook’s growth potential. He praises Google for its ad system, acknowledging that it also “didn’t have the big idea at the company’s founding, either,” but dismisses Facebook altogether: “Facebook has, in some yet-to-be-defined way, redefined something. Relationships? Media? Communications? Communities? Something big, anyway.”

“Big” is right — it has redefined all those things, so therefore it can and will create its own, new reality. So when Wolff says that Facebook’s strategy is “Just wait,” I say, “Hell, yes.” The company, in its brief life, has completely flipped the script on all the items he mentions. They just did it. They’re doing it. It is, in fact, as Wolff says, “the bridge to new modes of human connection.” And that is the opposite of being “left in the same position as all other media companies.” Most other media companies are failing at the ad-web business. We know this. Most other media companies (and, frankly, non-media companies) are drafting off of what Facebook is doing — and following its rules and ecosystem, just as they did with Google in years past.

I’m not Facebook’s biggest fan; it often pisses me off as much as it pleases me. But I’ve seen it change the web business from the front lines these past few years. Jobs are being created — “Social Media Editor,” “Social Marketing Manager” — that didn’t exist only two or three years ago, and these are being directly guided by Facebook (and, to a lesser degree, Twitter, Tumblr, Pinterest, etc.): its game, its rules. As Google did with “SEO,” so Facebook is creating an industry around its product.

I guess the most (and the least, after all these words I just typed) I can say is this: I’m looking forward to the day when I can say, “I bought Facebook at $29.”

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