If consumers have their way, movie critics will be taking an early retirement, advertisers and marketers will be trolling Facebook and blogging circles for attention, and history will morph before our eyes like content in a wiki.

All indications are that we're heading in that direction — and businesses are getting concerned about what it will all mean.

Pundits now say that the consumer is sitting squarely in the driver's seat when it comes to the day-to-day goings on in the world. That's because for the first time in history, we have entered an era of "empowered individuals" who can dictate the content they receive and deliver - and create their own.

According to Bill Nuti, chief executive officer of NCR in Dayton, Ohio, consumers in 2008 are passing a significant milestone: they are now outstripping major companies in their consumption of processing power and bandwidth.

"Interestingly, the consumer has become the primary target of technology investments and innovations," he says.

"Consumers are now the No. 1 users of semiconductors, surpassing the consumption of business and governments. And this year, consumer IP (internet protocol) traffic is projected to surpass enterprise IP traffic for the first time in history."

Couple these technology milestones with the phenomenal growth of social networking, blogging, wikis and everything else under the Web 2.0 banner, and the whole notion of user-generated content is quickly taking over the collective mindset.

Corporate wariness

The role of user-generated content is also dividing the philosophical ranks of organizations. There are those who want to embrace it with open arms - and those who fear the chaos unchecked consumer control over content could bring.

Max Valiquette, digital culture expert and professional researcher based in Toronto, notes: "A lot of traditional businesses are feeling the heat from all this. Control has shifted from the traditional content creators to the consumers. At the same time, it's an enormous opportunity for those organizations that are nimble enough to adapt."

As a person who spends a good part of his working day talking to companies and helping them figure out how to handle "the Web 2.0 thing" and its implications, Jean-Francois Barsoum, practice leader for

'…It's a dialogue you can't control. You have to get used to that fact.'—Jean-Francois Barsoum

IBM Canada Ltd. in Montreal, says people have to wake up to the new reality. And that means companies must learn how to cope with the good, the bad and the ugly that comes with the consumers who are plugged in to an online world that allows a two-way flow of information.

"[Businesses are] used to a world where images and messaging can be controlled," Barsoum says. "It's no longer a one-way speech — it's a dialogue you can't control. You have to get used to the fact that some of the replies may not be so pleasant and work with it. Perfection is no longer the goal, but authenticity and honesty is."

"There's a dynamic conversation occurring whether businesses like it or not, and it's very influential with consumers," confirms Bradley Silver, co-CEO of BrandIntel in Toronto, a provider of technology services for capturing and analyzing user-generated content. "It's affecting product design, media, public relations and sales. Businesses need to figure out how to engage in those conversations, because [consumers have] redefined the rules of engagement."

Putting out fires

It doesn't help when businesses are seeing constant reminders of highly publicized disasters that showed consumer engagement in the worst possible light. When the L.A. Times launched its wiki-based editorial in 2005, within hours the site rapidly became a breeding ground for vandalism and pornographic picture postings. It only took two days before the pilot project was scrapped. But the lingering after-effects of this spectacular failure are still discussed online for all to see.

Chevrolet took a shot at encouraging consumer-based ads for the Tahoe SUV by offering people the opportunity to mix and match online footage and add their own text. Two years later, internet sites are still posting consumer-generated ads that showcase the vehicle as a gas-guzzling, pedestrian-killing contributor to global warming.

Others have managed to be more strategic in their efforts and avoid ending up in the online snafu pile. Last year Ford GMR (Global Market Research) discovered some damaging misinformation had shown up on a Mustang enthusiasts' site and was quickly making its way to a large population within the automotive community. It decided to engage consumers in their own sandbox to stop the bad press dead in its tracks.

It began when someone had posted misleading comments that Ford's legal department wouldn't allow the members of the Black Mustang Club to use their photographs for a calendar, explains Tonya Colliau, marketing director for RDA Group in Bloomfield, Michigan. So Ford decided to use the same forum to issue a correction. Within 24 hours the consumer tide started turning from ranting about rights violations to raving about Ford's responsiveness.

Tracking user-generated content

"If you do it right you can put out a lot of fires — big or little," says Colliau. "It's a great example of how consumer engagement can work."

She adds that tracking user-generated content is absolutely critical in an industry where buyers are more interested in what their peers are saying than the corporations and advertisers. "Our studies show that 80 per cent of consumers do their research online."

The travel and hospitality industry is equally vulnerable to the user-generated content phenomenon, as countless travel advisor sites offer an open forum for travelers to praise or pan industry players at will.

Fairmont Hotels & Resorts in Toronto has been openly courting the user-generated content market by building its own social networking community. The rationale is simple, says Sean Taggart, executive director of marketing — it's better to deal with the devil you know.

"In any organization the biggest fear is negative feedback being widely shared," Taggart says. "But we're already contending with third-party sites that do that, so we have to accept and embrace the idea and bring it into our own forum. While it may make us more exposed, it also makes us more trustworthy as a company. If we didn't create our own online community, the whole [user-generated content] thing could get away from us."

Silver explains that gaining a solid understanding of user-generated content begins by having the ability to find, analyze and prioritize the millions and millions of bits and pieces of information out there. But it's definitely worth the effort.

Greatest sales tool

"It's a whole new universe where you need to understand the content and how to translate it. When you can combine the ability to capture emotional insights and target relevant information, you end up with a very powerful lead indicator and competitive weapon."

"If you could get a pipeline to a database of 60 million customers to get product and consumption habits — that would be the single greatest sales tool in the history of recorded time," says Valiquette.

While the debate rages as to how much business can control in this brave new world of user-generated content, Barsoum says that in the long term, "I think it's a good thing, because it will make [businesses] stronger and more responsive. They've never had a channel to do that before. Now they should be happy to have it. The more you can deal with this on your own terms the less likely you will become a victim."

The author is a Toronto-based freelance writer.