Which demographic niches will move online next?
Friday, December 12th, 2008Darren Hoyt got me thinking about who is online, with his remarks about RSS feeds:
Google Reader’s popularity is surging and the number of people consuming web content via RSS readers has grown overall, but no one’s claiming RSS is a mainstream concept just yet. It’s mostly the geeks and early-adopters who know what it is and what to do with it, thus they don’t need to be sold on whether a blog offers an RSS feed—their feedreader can auto-detect it based on URI anyway… Yet so many theme designers use valuable screen space to display a prominent (and mysterious, to most) orange RSS icon. Non-techy users will either avoid the icon or click it and be taken to a page of XML gobbledygook.
I started to wonder about non-techies and when and if they will ever think it is natural to subscribe to RSS feeds. I wrote this as a comment on Darren’s site:
My mom is in her 70s and over the last 3 years she has become a regular reader of Google News. I set it as the homepage on FireFox and IE on her computer. After I’d set it up, she surprised me by exploring it enough to learn how to customize it. Since she is fluent in French, she told Google News that she wanted news in both English and French. She now gets titles in both languages.
More recently, she’s become a regular reader of DailyKos. For years my brother has sent her links to occasional posts on DailyKos, but only recently has my mom become a regular reader. Assuming she eventually gets interested in other political blogs, I imagine there is an RSS feed reader in her future.
There are young people whose reading habits were shaped during the era of the Web. They’ve grown up getting their news online. And every year they are another year older (eventually they become that demographic that advertisers value most). On the other hand, there are certain paper magazines that have what I’d guess are slightly older audiences. Think of magazines about fishing or boats. The audience for these magazines will, I suspect, be slowly eroded by the generational shift. To me, the conclusion seems to be that eventually whole categories of print-based magazines will be endangered by their online rivals. If this decade saw the maturation of the tools needed to build complex, dynamic websites, the next decade is likely to see large scale shifts in how the public gets its news. RSS feeds seem like an obvious part of that shift.
At the end of the 80s, tech oriented college kids went onling (the internet was available on all campuses, though it wasn’t yet available to the general public). During the 90s, tech-oriented youth went online. Tech-oriented gay teens, in particular, began to find an escape from harrassment online. I’m using the phrase “tech oriented” rather than “affluent” or “college educated” or any other such phrase. danah boyd has written of the difficulties of defining social classes in America. People involved with the tech industry were among the first online, for obvious reasons. During the current decade, the web became an important resource and support for new moms. People with non-majority political viewpoints found the Internet an important place to converse and organize. Professors began to build reputations online (though the majority of professors still don’t have weblogs and the web has not replaced the peer-reviewed process). Law professors started posting essays on their weblogs, a few of which were cited in court cases. A new generation of journalists found they could launch quite successful careers through their weblogs. The news industry was transformed. The gambling industry was also transformed, and to the extent that we can consider the sports industry separately from the news industry, it too was transformed.
Except for the professors and the tech crowd, most of the other groups that went online had in common a sense of isolation. New moms, gay teens, and folks with minority political viewpoints greeted the web as a place where they could finally connect with others. Gamblers too, for different reasons.
Each year that passes sees the web become more central to people’s lives. This decade saw an explosion of online social networks, such as MySpace and Facebook and, for professional contacts, LinkedIn. People nowadays often meet their romantic partners online.
When the economy recovers from the current recession, society’s acceptance of the web will enter a new phase. The early adopters have all adopted the web, and the middle part of society has mostly embraced it too. The late adopters will be increasingly online over the next few years.
Much of the content now online is subsidized by existing offline publications. For instance, the New York Times online is subsidized by the offline version of the paper. My mom is a very great fan of the New York Times. She subscribes to the paper version of it and she loves to read it. Myself and my brothers only read the New York Times online. So, to some extent, older folks like my mom are subsidizing the reading habits of younger people. As the demand for the older, offline product shrinks, the ability of the offline product to subsidize the online product will also shrink. Personally, I think the New York Times will survive for a very long time to come but other publications will disappear. Some very small niche subjects will likely only be able to support online publications. For online publications, the exciting possibility is how much additional revenue will become available to them.
There are many groups that are slow to adopt technology. There are a few groups who feel that technology, by itself, is contrary to their mission or ideology. My experience with iHanuman.com reminded me that there is a great resistance to technology among some who are students of yoga (some yoga instructors insist that sitting in front of a computer is bad for your body and therefore contrary to yoga). My experience with The Second Road has taught me that the recovery community is only slowly moving online. In fact, in many ways the online recovery community resembles where political blogs were about 6 years ago – they all have small audiences, the overall audience is probably growing quickly, especially for younger folks.
I recall a Second Road meeting where someone asked why anyone would go online to seek support. We were discussing young people (under age 25) with a counselor who worked with youth. We wondered, if a 20 year old is at a party and someone pulls out meth, and that 20 year old is trying to stay clean, won’t they simply call someone else in recovery? Don’t all young people have cell phones, and don’t they use them all the time? The counselor corrected us. Most young people have limited cell phone plans. They are constantly having to save their minutes, or they are out of minutes. Also, at a party, it is much more socially acceptable to say “I’ve got to check my email, can I borrow your computer?” than it is to say “I’ve got to call my sponsor, can I borrow a phone?”
Middle class Baby Bomers are now entirely online, and they now organize their social lives around the web almost to the same extent as the younger cohorts do. Most of the big web companies that have so far thrived have been built or lead by Baby Boomers (early adopters, to be sure). Even those Baby Boomers who missed the first wave of the web eventually joined up. I’ve known Baby Boomers who made a lot of money selling things on Ebay or Amazon. I’ve known Baby Boomers who’ve met their current romantic partners on the web.
The groups that haven’t yet moved online are the ones that have so far had some reason to resist computers, or some obstacle keeping them from the Internet. Rural areas, which are only now getting broad band, poor people and older people are major demographics who’ll be moving online during the next few years.
If a technology is truly disruptive, then it will cause the bankruptcy of many large, established firms. Over the last 15 years, since the web did not cause large-scale bankruptcies for large, established firsm, some people began to doubt whether it was truly disruptive. But consider the way that Clayton M. Christensen first defined a disruptive technology:
New performance introduced by a disruptive technology, which typically begins at a lower level of performance, but rapidly improves until it meets the majority of customers’ needs.
It’s possible that the web is only now reaching the point that it becomes truly disruptive. Many people have rejected it up till this point. The way of accessing it has been through a personal computer, which has been expensive and cumbersome. And broadband connections were slow to spread, especially in the US. Perhaps we are only now arriving at the critical moment of ubiquity.
All the remaining groups, all the factions of the population that have so far resisted the Web, or been unable to reach it, are now (over the next 5 years) likely to be brought online by the collapse of offline alternatives. The massive bankruptcy of the old ways of doing things will leave these groups with less and less options. For those groups who wanted to be online but were kept from doing so, more and more options will probably ease their path.
Conclusions: over the next 5 years, one of the biggest opportunities for content sites will be those that aim to directly replace existing paper-based content. Such sites were much hyped and much predicted in the mid 90s, but it turns out those predictions were premature. 13 years later, I believe we’ve arrived at the moment for such predictions to come true. No one person can be aware of all of the possible demographic niches that are now ready for content via the Web. I am aware of a few possibilities, which I’ve mentioned above. I believe now is the right time for a new wave of investment in content sites.