Considering currency with digital media

Toronto's nextMedia conference focusing on monetizing digital media kicked off with a session on the Economic Meltdown. Keynote speaker Shelly Palmer, MD of Advanced Media Ventures Group and host of MediaBytes, an online daily newscast, broke down the three models of online content and the value they have.

The three models that currently exist, according to Palmer, are the "I pay, you pay, they pay" models. And the three main silos that exist for content are video snacking, which can be defined as short and low resolution and found on sites like YouTube; download to own, which is the 'you pay' model like iTunes; and broadband video, which runs the gamut from short to high resolution full-length television shows and films on sites like Hulu.

With so much content available in all of those categories, it is important to realize that considering money as the only currency from online ventures is a mistake, says Palmer.

"The Internet sucks at creating value into wealth," Palmer explained, while also pointing out that considering engagement when it comes to advertising dollars is also a mistake. He says there is currently no agreed upon standard of engagement so it cannot be quantified.

Instead, one must consider the 'purchase funnel' when it comes to an updated financing model. Keeping in mind that awareness, interest, desire and action are key components users must have to create any sort of currency. "If you can't drive anyone down the funnel using currencies, you haven't got a 21st century model," he says.