Why is it that there seems to be such an oversupply of media inventory on the Internet.  Or is it just a lack of demand? Something that has always struck me about publishing on the Internet is that it’s so easy and the cost of production relatively low.  Consider the growth of user generated content, social media and mobile applications over the last few years as proof of this. Is all this content just digital junk or a treasure chest of supply?
Look at it from the demand side.  For marketers, advertisers, purchasers and sponsors of most free forms of content - whether it’s a blog, news website, free newspaper or sponsored event – it’s all about efficiency. The medium is their marketplace.  They’ll pay to have their stall and wares on display as long as it gives them a decent return. Based on their performances they will either assign it junk or treasure trove status.

However, the challenge that most media companies or suppliers of content are grappling with is the ease with which their readers seem to shift away from their marketplace, coupled with growing numbers of adjacent marketplaces springing up around them. The network effect of content syndication via search engines, user distribution, RSS feeds and other social media and sharing applications has democratized content well beyond the original editorially designed “target audience”.  This is combined with a more networked and increasingly integrated media marketplace - i.e. you can read the New York Times when it’s delivered to your door, overnight to your inbox, on your Smartphone, your eBook Reader or any combination of those given your circumstances, mood or location.

All these things have combined to make what may have been perceived as a scarce resource, i.e. vetted editorial content bought at a newsstand or delivered to you via a cable operator, readily and freely available. Even if certain publishers such as The Financial Times and Wall Street Journal have premium or hybrid models in place, it’s still a hop skip and a click away from gaining similar news from alternative sites and sources. From top, global news headlines down to hyper-local content, it’s all on-tap.   Publishers have their work cut out for them, that’s for sure.

This explosion of user choice, rapid changes in media consumption and behaviour has led to the marketing value chain becoming more fragmented.  As a result, the complexity of matching buyers and sellers has consequently increased. Imbalance is a further consequence.

This brings me back to supply and demand and the lack of equilibrium that many publishers seem to experience. Could it be that the value is not in the actual content, but perhaps in its consumption - not just how much, for how long and how frequently - but more importantly by whom? Smart media companies are onto this, looking at ways to deepen the engagement with their audience and leveraging this relationship in new and unique ways. There’s even content farming in play, see the blog here by Cameron Hulett.

So what’s lacking? DEMAND-SIDE SCALE.  Marketers need to step up and put some skin in the digital game.

The internet is the largest marketplace any marketer could ever have dreamed-up – there’s an overabundance of supply. More than ever we now need marketing methodologies, resource management, and the implementation and management of campaign funds in a way that scales to this new landscape. It’s a new frontier and yes it’s almost overwhelming, but it’s interactive, rich with data and littered with technology tools and platforms to take it on.

If marketers grab the initiative they can get the gems on their terms, enrich their own customer experiences and bring much needed scale and equilibrium to the digital media marketplace.