If you read my recent blog entry, you know that the way we consume content (i.e., reading) is changing quickly. What you might not know is the way that content is developed (i.e., writing) is changing just as fast.

Time Magazine recently ran a story about Digital Media, a start up content provider. The company, which was founded in 2006, uses complex algorithms to predict the stories people want to read. Critics have called Demand Media a digital sweatshop. Some people say this will raise the bar for journalists; others say it will lower it, especially since it’s a much cheaper way to develop original content.

I don’t understand why this is such a hot debate. Predicting a reader’s or a customer’s interest is essential not only when targeting appropriate stories but also when targeting ad campaigns. Whether this information comes from the market or from an algorithm, knowledge is a good thing. Who cares how you get the end result?? Ads that don’t speak to potential customers are useless. Media content must satisfy a need, and above all it must SELL STUFF!!

So once Demand Media identifies content, how do they produce it? By employing a small army – 7,000 by last count – of pre-screened freelance writers that pick stories from a pool of algorithm-vetted available topics. The first person in the production chain writes the story headline for a few cents; another person writes copy for $3 to $15 depending on story length; and finally an editor fact checks and corrects grammar in the final product. The end result, which also includes videos produced through a similar method, is posted on Demand Media’s extremely popular websites. These websites, such as eHow.com, Cracked.com and Livestrong.com, get an estimated 100 million+ hits a month!!

Not only is content generated like this compelling, it’s also profitable, which no doubt means this trend will continue to impact traditional print media and advertising going forward. Demand Media took a bold step by turning the traditional content model upside down. Now let’s see which brave agencies and brands pick up this new model and run with it.

Time Magazine – Working for Demand Media: The Web’s Biggest, Scariest Content Machine