9. 5 Major Challenges Print dollars to digital dimes Disintermediation of media Dramatic increase in number of competitors Rise of ad networks Top 50 Web sites command 90% of online revenues
10. Simplifying Digital Strategy 4 P’s of Marketing Product Price Place Promotion 4 S’s of Digital Media Scale Segmentation Smarts Science
15. The challenge of ad networks BusinessWeek: 30% of display ad dollars spent with ad networks "Moving from site-targeting to people-targeting is the central dynamic of the industry," says Matt Spiegel, chief executive officer of ad giant Omnicom Media's (OMC) digital group.
20. Technologies that Enable Scale APIs and Microformats: a way for one application to interact with another one (transfer data, log in, etc.) HTML5: supported partially in new browsers like Safari and Chrome… mobile platforms Semantic analysis: automated tagging Behavioral targeting: take lower value inventory and increase prices as much as 25%
25. Keys to Segmentation Unified customer database Website registration Registration API Tie consumption habits to customer database Semantic analysis of content improves contextual targeting AND behavioral data capture Tie in historical data RFM (recency, frequency, monetization)
27. Build a Vertical Ad Network Approach competitors, traditional and digital Adify, DoubleClick and others offer ability to create your own ad network Benefits of ad networks without the low CPM’s
29. Where to Spend “Content management systems are the new ad servers” – Tim Armstrong, CEO, Aol. "Moving from site-targeting to people-targeting is the central dynamic of the industry," says Matt Spiegel, chief executive officer of ad giant Omnicom Media's (OMC) digital group.
30. Content Management Semantic tagging Ease of use to editors SEO Integration with membership system Syndication capabilities Multisite management (theknot.com)
31. Membership Use threshold gating Data I’ve seen puts conversions around 30% Of those that become members, 40% subscribe to the magazine Majority of those are new print subs Hearst developed Circules 50% of subs now driven by Web $20 MM delta on circulation profits
32.
33. Areas to Save Web analytics: can be had cheaply but don’t skim on proper implementation Inventory / yield management Search Personalization, behavioral recommendation
35. Business Models Traditional Site-targeted advertising Subscription to content Push-based Assembly line approach Tradigital API license Content Syndication Subscription to service Scale-based (push and pull) Consultative marketing solutions sales execs
36. Simplifying Digital Strategy 4 P’s of Marketing Product Price Place Promotion 4 S’s of Digital Media Scale Segmentation Smarts Science
37. Wired on the iPad How does this scale? iPad version, Android version, Skiff version, etc. How does it segment? Not a lot of details as to how to deliver advertising What’s the science? Proprietary… will cost you significant investment up front and ongoing What skills are required? Lots of training or hiring of specialists
38. Alternate Scenario Build App in HTML5 Port it later Just go Web-based Does it scale? YES! Works on Apple and Android mobile devices How does it segment? It uses your regular ad server. What’s the science? Standards-based solution, degrades elegantly, affords future functionality What skills are required? Most technical producers are keeping up with HTML5. If not, learning curve isn’t high
Hinweis der Redaktion
Get your bearingsIdentify where you want to goRoute multiple alternativesPick the fastest routeProceed until you arrive at destination or start off on #1 againStart with getting our bearings - How many from B2B, consumer? - Large or small? - Heard of iPad or Skiff? - Heard of HTML5 or Oauth?
3307226Trad -> mimic print: Digital Editions on e-readersSaavy -> create scalable marketing platforms – The KnotTrad -> cutting costs and brandsSaavy -> investing in people and technology – Aol’s massive investment in Seed, editors for MediaGlow, acquisition of StudioNow for $36.5MM
Why is scale so important?In the U.S. Internet adoption is slowing – Pew Internet, 2009Hours per day has maxed out at 12 hours per week – Forrester Research, Consumer Behavior Online 2009120k blogs created per day according to TechnoratiThe game is about market share
http://www.labnol.org/internet/adsense-revenue-share/12531/Acting as an agency but taking 28% of revenues instead of normal fees.
Magazine brands largely flatLargest driver is acquisitions followed by launches, both expensiveVertical ad network much cheaper to build…
285 sites now live – local, themed, culturalled to 30% more visits to local mediaOpportunity to scale wedding registry business created new opportunity. GR360 – register at the Knot and select items from 6 retailers instead of one.Retailers signed on because of FB capabilities.
AOL.Over 1,500 journalists in newsroomOver 3,000 freelancersSeed: assigns, buys and distributes content (launched late ’09)Demand Media7,000 freelancers created content in Jan ‘10Raised $350 MMPays $15 per 750-word story
By the way, they have moved into broadcast as well with reality TV shows.
API’s: Provide a way for developers to access your data more easilyTrack usage, and add popular sites to ad network, acquire up-and-comers.Let entrepreneurs build your hive. Reap the rewards without the riskHTML5: Many startups are beginning to use HTML5 instead of or as a building block to mobile apps. Otherwise, you’ll need to figure out if you can afford to be on Kindle, iPad, Skiff, Android. Supports current location identification, semantic content identification, video and audio, forms)Semantic content analysis allow the bulk tagging of content with some intelligence as to context (company, place, person, etc.)
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11911106 – contextual – related ads next to related content11326763 – behavioral – someone who has previously demonstrated interest in subject matter of ad11892157– Demographics – based on age, gender, HHI, etc.11515170 – Social, friends of this person liked this, this person might as well6304149 -- Geography
Scalpel 424546Laser 2980429Ad networks will always have more scale and already have behavioral targetingYou need to come up with something better!What are the key subject areas that have audience, advertiser, ability to generate traffic Develop a way to segment those audience areas contextually, and behaviorally
Think like a retailerCollect dataTransactional communicationsAffiliates
