Can wine bloggers make money through reader financial donations? Maybe…

 

Ever since around the time I began blogging (May 2008), a dominating part of the conversation has been whether or not online content providers can make enough money to make their endeavor worthwhile.

Early in that time period, there were hopeful prognosticators—mainly younger bloggers themselves, and a handful of would-be consultants who hoped to make money advising them about the ins and outs of social media—who believed, earnestly, that sources of income would open up to online content providers, even if it wasn’t entirely clear how that would happen.

This was a kind of magical thinking, of course, but it could be forgiven in light of the immense difficulties print journalism was then undergoing. Newspapers and magazines were facing the severest financial crunch of their lifetimes, as revenue from advertising—always a print publication’s biggest source of income—fell off the cliff. The promoters of online content argued that this was because print publishing had reached the end of its useful lifetime: peering into a cloudy future, they claimed that print would go the way of gaslight lamps, horse-drawn buggies and slide rulers. And because print was about to go extinct, they said, all that advertising money, added to by additional revenues brought in by subscriptions, would flow to online content providers.

I replied, in this blog and elsewhere, that this was unlikely to be the case. Print journalism was indeed suffering, but it wasn’t because of the rise of blogging, it was because of the Great Recession. Advertisers pulled back, not because they were casting an adoring gaze upon online publishers, but because they were struggling to stay alive: they had first to cover the basics, like salaries and rent, before they could lavish money on page ads.

Well, print is coming back, isn’t it? But what remains a conundrum for online content providers is how to make money. Consumers have proven over and over that they do not want to pay to see things online. They feel that they’re already paying enough to get online in the first place, and besides, there’s such an infinitude of websites that, if one of them gets greedy and starts charging a per-view fee, there are always a billion others that remain free.

In the world of wine, there admittedly are a few sites that get away with charging money, Wine Advocate, Wine Spectator and Vinous among them. But these are outliers—peculiarities of the wine industry, which has enough ardent consumers and trade members who are willing to pay $100 a year for access. As for the rest of the bloggers, theirs remains a labor of love, not one of potential profit.

Some bloggers as a result have turned to accepting ads on their sites. Ads don’t bring in a lot of money, but they bring in some, and if the blogger can increase his numbers, the amount of money might go up. But the same consumers who refuse to pay money for access to online content also don’t like advertisements on the sites they go to. This is the reason behind Tivo, which “eats commercials” (in their own words), and it is also the rationale behind services such as Adblock, which allows users to “surf the web without annoying ads.” This is great news for web surfers, but it’s a disaster for content creators: they finally figured out how to make a little money, and along comes this company that prevents their ads from being seen. It’s also a disaster for the companies that advertise; a honcho from the Interactive Advertising Bureau called ad-blocking sites an unethical, immoral, mendacious coven,” extreme but, under the circumstances, understandable language.

Ad-busting companies such as Adblock certainly don’t want to kill the goose that lays the golden egg. That would not be helpful to their own bottom lines. What to do? In a really interesting development, Adblock just announced they will integrate Flattr, a Swedish company that calls itself “a social microdonations service” by which content consumers can make voluntary “donations” to websites they like. This eliminates the need of the provider to accept advertising (which most providers don’t like to do anyway), and also increases the depth and complexity of the relationship between provider and consumer. Users would set up a “PayPal-like account,” put money into it, and from those funds providers would be paid, using a special Flattr algorithm based on things like the duration of the user’s stay on the site.

Will the Adblock-Flattr model work? Flattr co-founder Peter Sunde said, on Fast Company, that the new model promises to help artists, creators, journalists, everyone, to earn a fair living from their work. Not to be abused.” That sounds pretty good to me.

From Mexico, a great wine and food pairing, and the perils of poorly-conceived advertising

 

I’m down here in Mexico on the fabulous Maya Rivera, at the Karisma El Dorado resort, south of Cancun, where I’ll be doing a bunch of wine education classes and dinners, some of them with the chef/partner of San Francisco’s new Aaxte restaurant, Ryan Pollnow. This is a very exciting opportunity for me. The resort itself is huge, more like a good-sized village, so yesterday afternoon some of the staff toured me around in a little shuttle cart so I’ll know where the various venues are located. The wines I’ll be talking about are from Jackson Family, representing a good cross-section of the portfolio.

In fact, we had our first wine dinner last night, and I must say it was really great. Chef Julio, of Karisma, prepared our food, creating wonderful Mexican dishes, and I found it thrilling. It was in one of Karisma’s food theaters; I was sitting with Chef Ryan, watching Chef Julio under the spotlights and in front of the cameras, which showed him on two big screen TVs, and when I suggested to Chef Ryan that the event had a certain theatricality about it, he said “Gastro-tainment.” That was a new one on me. I love it.

As soon as I got to Mexico I heard about a brouhaha concerning a Coca-Cola T.V. commercial that aired here that some people found culturally insulting, but that others thought was just fine. The commercial, which you can see here, keenly illustrates the potential mine fields companies must navigate in the images and messages their promotional materials convey.

The Coca-Cola commercial shows a group of young people (they look like American tourists to me)—good-looking hunky guys and long-haired young women in tight jeans and T-shirts—who seem to be on a Habitat-for-Humanity-style mission to build a giant Christmas tree in an indigenous Mexican town. To the saccharine strains of orchestral music, they paint and labor, high-fiving each other with white-toothed smiles, while the natives look on wondrously and gratefully. And, of course, there are coolers of Coca-Cola everywhere.

The style of the commercial is straight out of Coke’s 1971 “I’d like to teach the world to sing” post-hippie playbook: inspirational Kumbaya love. But some people didn’t get the good vibes. “Outrageous” and “racist,” they called it. Somebody tweeted, “When a company as big as Coca-Cola is saying #AbreTuCorazon [Open Your Heart] by giving Coca-Cola to indigenous ppl. what they are really doing is using them.” On the other hand, lots of the comments on the YouTube video either praised Coca-Cola for a sincere desire to help poor people, or wondered what the big deal was. “Couldn’t care less,” one person said; another pointed out a certain political correctness at work: “I love to laugh at freaking crybabies getting offended over nothing.”

At any rate, things got so hot that Coca-Cola issued a “rare apology” and pulled the ad, but versions it can still be found all over the Internet, as for example here, where it’s been retitled “The White Savior Ad.”

The take-home lesson for companies is that they really have to have culturally tuned-in people on their marketing and P.R. staffs. You can’t just let creative call the shots: you have to ask yourself how your images and messages will be perceived, not just by the people you think you’re talking to, but by everybody. Nobody thinks the Coca-Cola ad was intentionally racist or derogatory; no doubt the people who created it, and the managers who approved it, felt they were doing something lovely, in the spirit of Christmas. And perhaps, after all is said and done, that is exactly what the commercial is: a salute to cross-cultural brotherhood, good will and mutual respect.

Alas, in our world, even the most well-intended message can be wrongly interpreted.